Bill Gates' geothermal dark horse, Fervo Energy (FRVO.US), went public tonight! Priced at $27 per share, well above the expected range.

Geothermal developer Fervo Energy Co. (FRVO.US) raised $1.89 billion in its initial public offering (IPO) in the United States, selling 70 million shares at a price of $27 per share. Prior to this, Fervo had already increased both the price range and number of shares on Monday, with the adjusted price range being $25 to $26 per share. Based on the IPO price, Fervo's market value is $7.7 billion, calculated based on the total number of shares disclosed in the company's documents. Sources familiar with the matter revealed that the issuance received a double-digit oversubscription. Fervo uses horizontal drilling and multistage hydraulic fracturing technology in its pilot projects to produce geothermal energy, and expects to have its first commercial power plant connected to the grid by the end of 2026. The company is supported by Bill Gates' investment firm, Breakthrough Energy Ventures, as well as shale oil producer Devon Energy Corp., and is one of many energy producers looking to capitalize on the growing demand for power from data centers. According to the company's documents, Fervo's potential revenue under its full portfolio of power purchase agreements is approximately $7.2 billion. Fervo has also signed power purchase agreements with Southern California Edison, Alphabet Inc.'s Alphabet Inc. Class C, and Shell. Alphabet participated in a $462 million investment round last December. The Cape Station project in Beaver County, Utah, has an installed capacity of 500 megawatts and is expected to be one of the world's largest geothermal power projects. Overall, Fervo has disclosed that it has a combined lease area of 595,900 acres, with 2.6 gigawatts in advanced development stages and over 38 gigawatts in early development stages. The documents show that for the fiscal year ending December 31, 2025, Fervo achieved revenue of $138,000 and a net loss of $70.5 million; compared to revenue of $199,000 and a net loss of $41.1 million in the same period last year. After the IPO, company co-founders and CEO Tim Latimer and CTO Jack Norbeck are expected to retain control of the company through their ownership of Class B super-voting shares. The IPO is led by JPMorgan Chase, Bank of America Corp, Royal Bank of Canada, and Barclays PLC Sponsored ADR. The company is expected to be listed on the Nasdaq on Wednesday under the ticker symbol "FRVO".