Forgent Power Solutions Prices IPO at $27 for $8.22 Billion Valuation

The Dayton-headquartered company plans to issue nearly 16.6 million shares, while its current owner, investment firm Neos Partners, will sell an additional 39.4 million shares. This combined offering of 56 million shares underscores the robust investor appetite for the physical hardware required to sustain the global expansion of cloud computing and artificial intelligence.

Capital Allocation and Valuation

Forgent expects to generate net proceeds of approximately $427.7 million from its portion of the sale. According to the company, that figure could rise to $491.8 million should underwriters exercise their option to purchase an additional 2.49 million shares.

Upon completion of the offering, the manufacturer will have more than 304.4 million shares outstanding, assuming the overallotment is fully exercised. At the finalized strike price, Forgent reaches an implied market capitalization of roughly $8.22 billion, positioning it as a significant industrial player in the data center supply chain.