Geothermal startup Fervo Energy said Monday it expects to raise up to $1.3 billion in its initial public offering.
If shares sell at the top of their $21 to $24 price target, the company would be valued at up to $6.5 billion. This is more than double that of Fervo was reportedly looking for Earlier this year when it confidentially filed paperwork with the SEC to begin the IPO process.
The stock will trade on Nasdaq under the ticker FRVO.
Fervo’s price target comes after X-Energy’s successful IPO. nuclear power startup raised 1 billion dollars In an advanced IPO. When the company set its price target for the IPO, it sought a valuation of around $7 billion. Today, X-Energy has a market capitalization of more than $8 billion.
Both Farvo and The scramble has driven prices for new natural gas power plants up 66% over the past two years.
Fervo says the Cape Station power plant – its first large-scale project – will generate electricity at a rate of $7,000 per kilowatt at installed capacity. The company aims to reduce this to $3,000 per kilowatt of capacity, at which point it will begin to be cost competitive with natural gas.
