Fervo prices above range at $27, raises $1.89B

Zoom in: The Houston-based company sold 70 million shares of Class A common stock, giving it at a valuation of $7.7 billion.

• Underwriters also have the option to purchase an additional 10.5 million shares. The max proceeds including the greenshoe could deliver $2.17 billion.
• The offering was massively oversubscribed, says a source with knowledge of the offering, and bankers are marketing it as "the largest primary clean energy public equity deal of all time."

The intrigue: The largest shareholders before the offering include shale firm Devon Energy, Capricorn Investment Group, DCVC, and Breakthrough Energy Ventures.

• Other investors include B Capital, Google, Congruent Ventures, Galvanize, and Prelude Ventures.

Catch up quick: Axios Pro first reported in January that Fervo had confidentially filed its S-1.

• A source told Axios Pro in recent weeks that the public offering has seen a surge of investor interest driven by soaring AI power demand and general disruption in energy markets from the Iran war.
• Earlier this week, Fervo boosted its IPO plans, aiming to raise up to $1.82 billion at a $7.2 billion valuation.
• Fervo set its target range at $25-$26 per share.

How it works: Fervo uses traditional shale drilling techniques to unlock previous inaccessible geothermal projects, and is the first big player in the "enhanced geothermal" sector.

• The company says in its S-1 that it has 3.65 GW of power plant capacity under construction, or in advanced stages of development. Another 42 GW could be developed.
• Fervo says its first commercial project, called Cape Station, will deliver electricity at $7,000 per kilowatt of installed capacity, and its goal is to cut that cost by more than half, to $3,000 per kW of installed capacity.
• The company generated a net loss of just under $57.8 million last year, on almost no revenue ($140,000).

What's next: Fervo plans to trade Wednesday morning on the Nasdaq under the ticker symbol "FRVO."