The initial price offering for geothermal power developer Fervo Energy came in Tuesday at $27 per share as it made its debut on Nasdaq, and as a result, the energy firm had raised $1.89 billion.
Oklahoma City’s Devon Energy is considered one of the largest shareholders. Just three years ago, the oil and gas firm made a $10 million strategic investment.
According to Stock Titan, Devon Energy Corporation, through its wholly owned subsidiary Devon Technology Ventures Holdings, L.L.C., reported indirect ownership of several series of preferred stock of Fervo Energy Co. These preferred shares are convertible into Fervo’s Class A common stock in connection with Fervo’s initial public offering.
Devon’s subsidiary holds Series D-1, D-2, D-3 and E-1 Preferred Stock, which are collectively described as Preferred Stock. Each share of these series will automatically convert into Class A common stock, par value $0.0001 per share, on a 0.7194-for-one basis immediately prior to completion of Fervo’s IPO, and the Preferred Stock has no expiration date.
The filing shows indirect positions corresponding to 35,540,812 underlying shares of Class A common stock for the Series D-1 Preferred Stock, 4,766,557 underlying shares for Series D-2, 3,237,900 for Series D-3, and 6,118,752 for Series E-1, reflecting Devon’s significant pre-IPO stake held through preferred securities.
Two years ago, Devon helped raise more funding for Fervo, leaving David Harris, Chief Corporate Development Officer and Executive Vice President to state, “Fervo’s approach to geothermal development leverages leading-edge subsurface, drilling, and completions expertise and techniques Devon has been honing for decades. We look forward to deepening our partnership with Fervo to capture the full value of Fervo’s first-mover advantage in geothermal and the adjacencies to Devon’s core business.”
Among other large shareholders in Fervo Energy are Capricorn Investment Group, DCVC, and Breakthrough Energy Ventures. Reports suggested that other investors were B Capital, Google, Congruent Ventures, Galvanize, and Prelude Ventures.
Fervo had an IPO plan of raising up to $1.82 billion at a $7.2 billion valuation. Its target range was $25 to $26 per share and the company said it had already 3.65 GW of power plant capacity under construction or in advanced stages of development. The company sold 70 million shares of Class A common stock, giving it a valuation of $7.7 billion.
Based in Houston, the company uses traditional shale drilling techniques to unlock previously inaccessible geothermal resources. The IPO as well as investment from Devon Energy and other major energy firms is a reflection of investor interest in clean energy stocks while the nation experiences an AI boom.
Reports stated that bankers are already marketing it as “the largest primary clean energy public equity deal of all time.”
Fervo is traded on the Nasdaq under the ticker symbol “FRVO.”