Forgent Power Solutions, a designer and manufacturer of electrical distribution equipment, began trading on the New York Stock Exchange at an opening price of $26 per share on Thursday, underperforming its initial public offering price of $27 per share.
The company is listed under the ticker NYSE:FPS. The IPO was priced at $27 per share on Wednesday and comprises two components: 39,413,573 shares being sold by parent entities controlled by Neos Partners, LP, and 16,586,427 shares offered by Forgent itself.
Forgent will not receive any proceeds from the chunk of shares sold by the selling stockholders. The proceeds generated from the shares Forgent placed in the offering are designated to redeem interests in an operating subsidiary currently held by existing equity owners controlled by Neos Partners, LP.
The offering is expected to close on Friday, subject to customary closing conditions. In addition, the selling stockholders and Forgent granted the underwriters a 30-day option to buy additional shares at the initial offering price - up to 5,912,036 shares for the selling stockholders and up to 2,487,964 shares for Forgent.
The underwriting syndicate is led by Goldman Sachs & Co. LLC, Jefferies and Morgan Stanley as joint lead book-running managers. J.P. Morgan, BofA Securities and Barclays are acting as bookrunners. A group of firms are listed as passive bookrunners, including TD Cowen, MUFG, Wolfe | Nomura Alliance, KeyBanc Capital Markets, Oppenheimer & Co. and Stifel.
Forgent's product focus is electrical distribution equipment used in environments that demand high power reliability and capacity, including data centers, power grids and energy-intensive industrial facilities. The company's positioning in those end markets is a central element of its business description in the offering materials.
The initial trading at $26 per share, below the $27 IPO price, reflects the market's reception at listing. The offering structure, allocation of proceeds, and the availability of a 30-day option for additional share purchases are notable elements for investors and market participants following the transaction.