Fervo Energy's Initial Public Offering#
Fervo Energy, a Houston-based geothermal energy company, has filed for an initial public offering (IPO) with plans to raise up to $1.3 billion. The company is offering 55,555,555 shares of Class A common stock, with an expected price range of $21.00 to $24.00 per share. This marks the first time Fervo's stock will be available on the public market, as there was no prior trading for its shares.
Listing Details#
The company intends to list its shares on NASDAQ under the ticker symbol "FRVO." Following the IPO, Fervo will maintain a dual-class share structure. This means there will be two types of shares: Class A and Class B. Class A shares provide one vote per share, while Class B shares offer 40 votes per share. Class B shares can be converted to Class A shares under specific conditions.
Ownership and Control#
After the IPO, Tim Latimer, the CEO, and Jack Norbeck, the CTO, will own all outstanding Class B shares. Together, they will hold about 2.89% of the total capital stock but will control approximately 54.37% of the voting power, assuming no additional shares are purchased through the reserved share program or underwriter options.
About Fervo Energy#
Founded in 2017, Fervo Energy specializes in Enhanced Geothermal Systems, a technology that allows the extraction of carbon-free heat from deep underground rock. The company has adapted techniques from the oil and gas sector, such as horizontal drilling and multi-stage completion, to improve geothermal energy production.
Underwriters#
The IPO will be managed by a group of financial institutions, including J.P. Morgan, BofA Securities, RBC Capital Markets, and Barclays, who will serve as joint lead bookrunning managers. Other firms involved in the offering include Baird, BBVA, Guggenheim Securities, MUFG, Societe Generale, William Blair, Piper Sandler, and Wolfe | Nomura Alliance.