ERock, which makes natural gas generators for critical facilities, is targeting a valuation of up to $5 billion in its IPO in the United States, as it looks to tap surging investor enthusiasm for companies benefiting from the AI boom. Morgan Stanley and J.P. Morgan are joint lead bookrunning managers. ERock will list New York Stock Exchange under the symbol "EROC".
The Houston, Texas-based company is seeking to raise up to $641.9 million by offering 27.9 million shares priced between $20 and $23 apiece, it said in a regulatory filing on Monday.
AI infrastructure-linked companies have been at the centerstage of the U.S. IPO market this year as investors deploy capital into the "picks and shovels" underpinning the technology's buildout.
Gas engine maker Innio is poised to go public in New York this week.
ERock, founded in 2006, provides natural gas generators to data centers, utilities, and commercial and industrial customers across nine U.S. states, with a huge chunk of revenue coming from high-growth regions like Texas and California.
Data centers have enormous energy needs and are spearheading a surge in power demand in the U.S., with generative AI requiring significantly more electricity than traditional computing tasks.
ERock, which is backed by investment firm Energy Impact Partners, commissioned its first distributed power system in 2011 and has since scaled to 400 operational sites.
It had roughly $1.3 billion in contracted power system sales backlog as of March 31, a nearly nine-fold jump from a year earlier.
The company, formerly called Enchanted Rock, is targeting increasing its annual assembly capacity to roughly 1.2 GW by the end of 2026 with the development of its Hyperion facility in Houston.
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