Fervo Energy files for IPO seeking up to $1.3 billion

Investing.com -- Fervo Energy filed for an initial public offering on Monday, offering 55,555,555 shares of Class A common stock with an expected price range of $21.00 to $24.00 per share.

The Houston-based geothermal energy company plans to list its shares on NASDAQ under the ticker symbol "FRVO." Prior to this offering, no public market existed for the company's stock.

Following the IPO, Fervo will maintain a dual-class share structure with Class A and Class B common stock. Class A shares carry one vote per share, while Class B shares hold 40 votes per share and can convert to Class A shares under certain conditions.

Tim Latimer, chief executive officer and board chair, and Jack Norbeck, chief technical officer, will own all outstanding Class B shares after the offering. The two executives will collectively own approximately 2.89% of outstanding capital stock while controlling roughly 54.37% of voting power, assuming no exercise of underwriter over-allotment options and no purchases through the reserved share program.

Fervo Energy specializes in Enhanced Geothermal Systems. Founded in 2017 by Latimer and Norbeck, the company has adapted horizontal drilling and multi-stage completion techniques from the oil and gas industry to harness carbon-free heat from deep, impermeable rock.

J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays will serve as joint lead bookrunning managers for the offering. Additional bookrunning managers include Baird, BBVA, Guggenheim Securities, MUFG, Societe Generale, William Blair, Piper Sandler and Wolfe | Nomura Alliance.

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