Forgent Power Shares Advance 7.4% After $1.5 Billion IPO
(Bloomberg) -- Forgent Power Solutions Inc. shares rose 7.4% after the company and some of its backers raised $1.5 billion in a US initial public offering.
Shares of the electrical equipment maker closed at $29 in New York, compared to the IPO price of $27 each. The company and affiliates of Neos Partners sold 56 million shares after marketing them for $25 to $29 each.
The trading gave the Dayton, Minnesota-based company a market value of about $8.8 billion based on the number of outstanding shares listed in its filings.
Forgent designs, manufactures and sells equipment such as transformers, switchboards and power distribution units used in data centers, which require consistent and reliable power over long periods of uptime. Private equity firm Neos created the company in 2023 and built it up via acquisitions in 2023 and 2024.
Investors have been looking for opportunities to tap a boom in capital expenditures on artificial intelligence, with OpenAI alone committing to spend more than $1 trillion on AI infrastructure.
Still, Forgent’s Thursday debut came as a selloff in peers, including nVent Electric Plc and Vertiv Holdings Co., extended to a second day. A broader retreat from technology stocks has swept up companies that sell power equipment to data centers.
“Even though the markets have been choppy, particularly the last week or so, the the fact that we have three end markets that we participate in — between data centers, grid and industrial — that is sort of a natural hedge and a nice diversification,” Chief Executive Officer Gary Niederpruem said in an interview.
Forgent lacks as broad a product offering as Vertiv, which — in addition to electrical products — is a major provider of cooling equipment for Nvidia Corp. chips and other AI infrastructure. Still, Forgent’s focus on customized electrical equipment for the powertrain — the hardware that moves power from the grid to the data center — and the additional tailwind it’s getting from the need to upgrade the electricity grid are seen as pluses on Wall Street.
“We have plenty of room to run in the electrical distribution chain,” said Niederpruem, who previously worked at Vertiv.
Forgent has manufacturing campuses in Minnesota, Texas, Maryland, California and Mexico. It had about 2,000 full time employees as of Sept. 30. Neos was set to continue to hold the majority of shareholder voting power after the IPO.
The company had net income of $10 million on revenue of $283 million for the three months ended Sept. 30, compared with net income of $6.3 million on revenue of $154 million in the corresponding period a year earlier, according to filings.
The offering was led by Goldman Sachs Group Inc., Jefferies Financial Group Inc. and Morgan Stanley. The shares trade on the New York Stock Exchange under the symbol FPS.
©2026 Bloomberg L.P.
