Stock Markets February 6, 2026

Forgent Power Solutions Prices $1.5 Billion IPO and Commences Trading on NYSE

Dayton, Minnesota-based electrical equipment maker sells 56 million Class A shares at $27.00 apiece; trading began Feb. 5, 2026

By Jordan Park FPS
Forgent Power Solutions Prices $1.5 Billion IPO and Commences Trading on NYSE
FPS

Forgent Power Solutions completed its initial public offering by selling 56 million shares of Class A common stock at $27.00 per share. The deal, which began trading on the New York Stock Exchange on February 5, 2026, included shares sold both by existing stockholders controlled by Neos Partners, LP, and by the company itself. Proceeds from the company's portion will be used to redeem interests in an operating subsidiary; the operating subsidiary will cover all offering expenses.

Key Points

  • Forgent sold 56 million Class A common shares at $27.00 per share and began trading on the NYSE on February 5, 2026.
  • The offering included 39.4 million shares from existing shareholders controlled by Neos Partners, LP, and 16.6 million shares sold by the company; Forgent will not receive proceeds from shares sold by existing stockholders.
  • Net proceeds from the company’s share sale will be used to redeem interests in an operating subsidiary held by certain existing equity owners controlled by Neos Partners, LP; the operating subsidiary will bear all offering expenses.

Forgent Power Solutions, Inc. (FPS) has completed its initial public offering, issuing 56 million shares of Class A common stock at a price of $27.00 per share. The company began trading on the New York Stock Exchange on February 5, 2026.

The offering comprised two components: 39.4 million shares sold by existing stockholders under the control of Neos Partners, LP, and 16.6 million shares sold directly by Forgent. The company will not receive any proceeds from the shares sold by the existing stockholders.

Use of proceeds and transaction mechanics

Forgent has stated that net proceeds from the shares it sold will be applied to redeem interests in an operating subsidiary that are held by certain existing equity owners controlled by Neos Partners, LP. In addition, the operating subsidiary will be responsible for all expenses related to the offering.

Underwriting group and regulatory steps

Goldman Sachs & Co. LLC, Jefferies and Morgan Stanley served as joint lead book-running managers for the offering. J.P. Morgan, BofA Securities and Barclays acted as bookrunners. TD Cowen, MUFG, Wolfe | Nomura Alliance, KeyBanc Capital Markets, Oppenheimer & Co. and Stifel served as passive bookrunners.

The Securities and Exchange Commission declared the registration statement effective on January 28, 2026, clearing the way for the shares to begin trading in early February.

Business profile

Forgent designs and manufactures electrical distribution equipment intended for data centers, power grid systems and energy-intensive industrial facilities. Based in Dayton, Minnesota, the company emphasizes custom, "engineered-to-order" products tailored for technically demanding applications.


Context for markets and investors

The transaction separates liquidity provided by existing shareholders from capital raised directly by the company, with only the latter portion generating cash proceeds for Forgent. The underwriting syndicate listed above handled the placement and distribution of shares and supported the offering through the SEC process.

Risks

  • Forgent will not receive proceeds from the 39.4 million shares sold by existing stockholders controlled by Neos Partners, LP, which limits the cash raised directly by the company - this affects the company’s balance sheet and its ability to fund corporate uses.
  • The planned redemption of interests in an operating subsidiary depends on the net proceeds from the company’s 16.6 million-share sale; if those proceeds differ from expectations, the redemption outcome could be affected - this has implications for the subsidiary and ownership structure.
  • The operating subsidiary is contractually responsible for all offering expenses, which could influence that subsidiary’s financial position and operations in the near term.

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