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Editor’s Note: The smartest investors are buying up private shares – before a company goes public. This can let them invest at a huge discount to IPO price.
Discover the top 5 private growth companies – quietly preparing to go public. And I’ll show you how to invest today.
Some of the best IPO setups show up months after the deal, once most investors have given up on the stock.
That’s where I think we are with one AI power company that went public in June. Shares are currently trading 39% below the IPO price.
Company: ERock (NYSE: EROC)
IPO date: June 10, 2026
IPO price: $21.50 – raising $600 million
Recent price: $13.08
Market cap: $3.7 billion
ERock, formerly Enchanted Rock, is a Houston company that builds modular natural-gas power plants. Its pitch is speed.
Hyperscalers are building AI data centers as quickly as possible. New project may be forced to wait years for a grid connection. ERock can put power on site much faster. Plus, the company continues to run and maintain the equipment.
Artificial Intelligence is driving the demand.
Anthropic placed a 470-megawatt equipment order. Here’s how to grab a stake in the Anthropic Pre-IPO.
ERock has started building a 366-megawatt plant for El Paso Electric that serves a Meta data center campus. Contracted backlog hit $1.7 billion at the end of June, roughly 10 times higher than a year earlier. Management says production is sold out into 2028.
So why is the stock down 39% from its IPO price?
The deal was priced richly. ERock came public at a $5.3 billion enterprise value. That made the stock expensive compared with just $183 million of 2025 revenue. It debuted into a choppy market two days before SpaceX and closed its first day about 12% below the offer. Roughly $180 million of the proceeds went to cashing out existing investors.
Then the reported numbers looked soft.
Second-quarter revenue was $39.9 million, down from $68.5 million a year earlier because of project timing. ERock lost $67.7 million in the quarter, including a one-time $48.8 million charge for paying off debt. The stock hit a low of $8.88 in late July, and short sellers piled in. Roughly 17% of the float is sold short.
Here’s what caught my attention.
Management guided 2026 revenue to $435 million to $465 million, about 2.5 times last year. Analysts expect roughly $1.4 billion in 2027. That’s more than triple. EBITDA is forecast to climb from about $6 million this year to nearly $196 million next year.
The balance sheet is solid. $627 million in cash, no debt, and an undrawn $250 million credit line.
Subtract the cash, and the business trades at a little over 2 times next year’s expected sales.
Analysts model $1.20 in earnings per share for 2028. Apply a 25 times P/E multiple – and you get a stock price of $30. That’s more than double the recent price.
That’s a bit ahead of the average analyst target of around $22.50. The high target of $28 would roughly double today’s price.
The risks are real. Revenue is lumpy and back-end loaded. A few AI customers make up much of the backlog, and some orders can be delayed or canceled. Margins need to expand a lot from today’s losses.
The next test is third-quarter results, expected in early December.
After the selloff, ERock looks interesting. It’s going on my watchlist as I dig into the stock.
Billionaires in Silicon Valley and Wall Street are using a little-known secret to invest in the best PRIVATE companies – right before they go public.
Now’s your chance to join them.
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Ian Wyatt
Editor, IPO Watch