Geothermal is hot right now.
Shares of Fervo Energy jumped 35 percent in its first day of trading on the Nasdaq after the Houston-based geothermal developer raised $1.89 billion in an initial public offering on Tuesday. The company sold 70 million shares at $27 a piece in the IPO, exceeding its target of $21-$24 a share. Trading ended Wednesday at $36.54 a share.
The IPO represents a vote of confidence from Wall Street for a company that has long been a darling among clean energy enthusiasts and oil and gas industry veterans. Fervo uses techniques honed in oil and gas fields to unlock heat from beneath the Earth’s surface to generate carbon-free electricity, attracting plaudits from companies such as Google and Liberty Energy, the fracking services firm founded by Energy Secretary Chris Wright.
Fervo initially sought to raise $1.25 billion through its IPO, but increased its target after seeing strong demand from investors, said Sarah Jewett, a senior vice president at Fervo. The company’s market valuation had surpassed $10 billion by the close of trading Wednesday.
