Blackstone's "Biological Parenting" project giant Legence (LGN.US) IPO priced at $28 per share will debut on Nasdaq tonight.

Engineering and maintenance service provider Legence (LGN.US) will officially debut on the Nasdaq tonight, issuing 26 million shares of stock at a price of $28 per share, raising a total of $728 million, slightly above the midpoint of the price range of $25 to $29. Based on this offering price, the company, headquartered in San Jose, California, will have a market value of $2.9 billion. Legence focuses on the high-tech requirements of the high-growth industry of construction, with its business covering sectors such as technology (especially data centers), life sciences, healthcare, and education. Its client base includes over 60% of companies listed in the Nasdaq 100 index. The company, with a history of over a hundred years, provides solutions for designing and installing HVAC systems and improving building energy efficiency and sustainability. The IPO is led by 19 institutions including Goldman Sachs Group, Inc., Jefferies Financial Group Inc., Bank of America Securities, Barclays, and Morgan Stanley. Financially, as of the past 12 months ending on June 30, 2025, the company achieved revenue of $2.2 billion; at the same time, the total value of unfinished orders and awarded contracts amounted to $2.8 billion. Notably, after Blackstone Inc. acquired Legence (then known as Therma Holdings) from private equity firm Gemspring Capital in 2020, it transformed the company from a regional HVAC contractor into a national energy-saving service platform through acquisitions of smaller competitors like A.O. Reed, OCI Associates, and P2S, resulting in a doubled valuation. The IPO comes at a time when there are dual benefits from US building energy efficiency policies and AI infrastructure investment, positioning Legence as a "ESG concept stock" and a rare target for sharing in the dividends of North America's trillion-dollar building decarbonization and data center expansion. Over the next three years, whether the company can maintain a compound growth rate of over 15% will depend on its ability to integrate acquisitions and the actual speed of implementation of data center orders, which will also be a focus for secondary market investors.