Fervo Energy is valued at $10.21 Billion in Nasdaq debut

Fervo Energy's shares rose 33.3% on Wednesday in its Nasdaq debut, giving the geothermal energy developer a value of $10.21 Billion.

The Houston-based company's shares opened at 36 dollars, above the $27 offer price.

The company sold 70?million?shares at $27 each, which was above the marketed price range, to raise $1.89 billion.

The listing comes at a time when artificial intelligence, rapid expansion of data centres and surges in power demand are straining the U.S. grid.

Electricity consumption is increasing due to the demand for electric vehicles, as well as domestic manufacturing.

Fervo, a developer of energy seeking to capitalize on the rising demand for power from data centers, is backed by Bill Gates’ investment firm Breakthrough Energy Ventures as well as Devon Energy.

The company was founded in 2017 and develops geothermal systems that generate carbon-free, 24/7 electricity. They position the technology as an 'alternative or complement' to intermittent renewable energy sources such as solar power and wind. Reporting by Atharva & Pragyan Kalita from Bengaluru, Editing by Tasim Zaid

(source: Reuters)