Forgent Power Solutions Inc. reported that underwriters have fully exercised the over-allotment option associated with the company's initial public offering, resulting in the purchase of 8,400,000 additional shares priced at $27.00 per share.
The additional allotment was split between shares sold by entities controlled by Neos Partners, LP and shares issued by Forgent itself. Specifically, 5,912,036 shares were sold by parent entities under the control of Neos Partners, LP, while 2,487,964 shares were offered by Forgent. The transaction was completed and closed today, according to a company statement.
Forgent noted that it will not receive any proceeds from the portion of the over-allotment sold by the selling stockholders. Net proceeds attributable to the shares Forgent sold will be applied to redeem interests in an operating subsidiary that are held by certain existing equity owners controlled by Neos Partners, LP, the company said.
The over-allotment follows Forgent's initial public offering in which the company completed the sale of 56,000,000 shares. That offering included 39,413,573 shares offered by selling stockholders and 16,586,427 shares offered directly by the company.
Investment banks and broker-dealers that managed and supported the offering were identified by the company. Goldman Sachs & Co. LLC, Jefferies and Morgan Stanley acted as joint lead book-running managers. J.P. Morgan, BofA Securities and Barclays served as bookrunners. A group of firms including TD Cowen, MUFG, Wolfe | Nomura Alliance, KeyBanc Capital Markets, Oppenheimer & Co. and Stifel served as passive bookrunners.
The Securities and Exchange Commission declared Forgent's registration statement on Form S-1 effective on January 28, 2026, clearing a regulatory step required for the offering to proceed.
Forgent designs and manufactures electrical distribution equipment intended for use in data centers, power grids and energy-intensive industrial facilities. The Dayton, Minnesota-based company focuses on custom, engineered-to-order products for technical applications.
This announcement details the closing of the over-allotment tranche and reiterates the allocation of proceeds and the parties involved in the underwriting syndicate. No additional financial terms or forward-looking statements beyond the allocation of proceeds and the share counts were provided in the company's statement.