Forgent Power Solutions Launches $1.62B IPO for 56M Shares at $25–29
Forgent Power Solutions launched an NYSE IPO for 56.0 million Class A shares, including 16.6 million shares by the company and 39.4 million by Neos Partners sellers, priced at $25.00–$29.00 per share with up to 8.4 million greenshoe option shares. Proceeds will redeem subsidiary interests held by existing equity owners.
1. Forgent Power Solutions Launches IPO Roadshow
Forgent Power Solutions, a U.S. designer and manufacturer of customized electrical distribution equipment for data centers, power grids and industrial facilities, has formally launched the roadshow for its initial public offering. The offering comprises 39,413,177 shares of Class A common stock sold by principal shareholders controlled by Neos Partners, LP, together with 16,586,823 shares sold by the Company. In addition, underwriters have been granted a 30-day option to purchase up to 8,400,000 additional shares, subject to underwriting discounts and commissions.
2. Capital Structure and Use of Proceeds
Forgent Power Solutions will not receive proceeds from shares sold by its Selling Stockholders; net proceeds from the Company’s 16.6 million–share tranche will be used to redeem certain equity interests in an operating subsidiary held by existing Neos Partners–controlled owners. The operating subsidiary will bear or reimburse all offering expenses. Upon effectiveness of its registration statement on Form S-1, Forgent plans to list its Class A common stock on the New York Stock Exchange under the symbol “FPS.”
3. Expected Valuation and Pricing Range
Based on the announced share counts and preliminary pricing indications between $25 and $29 per share, Forgent Power Solutions could achieve a fully diluted market capitalization in excess of $8.8 billion. At the midpoint of that range, the Company would raise approximately $1.6 billion, excluding any exercise of the underwriters’ overallotment option. Final pricing is expected following the roadshow, subject to market conditions and SEC clearance.
4. Syndicate of Lead Managers and Underwriters
Goldman Sachs, Jefferies and Morgan Stanley are serving as joint lead book-running managers, supported by J.P. Morgan, Bank of America Securities and Barclays as bookrunners. Additional passive bookrunners include TD Cowen, MUFG, Wolfe | Nomura Alliance, KeyBanc Capital Markets and Oppenheimer & Co. This broad syndicate underscores strong institutional interest in Forgent’s engineered-to-order product portfolio and its differentiated position in high-customization, short-lead-time electrical solutions.