Data center power equipment supplier Forgent (FPS.US) sets IPO pricing at $25 to $29 per share, aiming to raise up to $1.62 billion.

Data center power system design and construction manufacturer Forgent Power Solutions (FPS.US) has filed for its initial public offering (IPO), with an expected fundraising amount of up to $1.62 billion, highlighting investors' strong interest in artificial intelligence (AI) infrastructure-related companies. According to regulatory filings submitted by the company on Monday, the Minnesota-based Forgent plans to issue 56 million shares of common stock at a price range of $25 to $29 per share. At the upper end of the offering price, Forgent's valuation would reach approximately $8.8 billion post-IPO. Forgent's core business is the production of critical power supply equipment for data centers, including transformers, distribution panels, and power distribution units. The long-term continuous operation of data centers relies heavily on uninterrupted, highly reliable power supply, and such equipment is crucial for its stable operation. Forgent was established in 2023 by private equity investment company Neos Partners, which completed a series of acquisitions in 2023-2024 to expand its business. Even after the IPO, Neos Partners will retain majority voting rights and maintain control of the company. Forgent's decision to go public comes at a time when capital expenditures in AI and cloud infrastructure are accelerating, and companies benefiting from this trend are highly sought after by investors. Just the company OpenAI alone has announced plans to invest over $1 trillion in AI-related infrastructure. Earlier this year, cloud infrastructure service provider CoreWeave (CRWV.US) saw a significant increase in its stock price following a $1.57 billion IPO. Currently, Forgent has production facilities in Minnesota, Texas, Maryland, California, and Mexico. As of September 30th of last year, the company had approximately 2000 full-time employees. Financially, documents previously disclosed by the company show that in the three months ending September 30th, the company achieved a revenue of $283 million and a net profit of $10 million; compared to the same period the previous year, the company had a revenue of $154 million and a net profit of $6.3 million. Forgent's common stock is set to be listed on the New York Stock Exchange under the ticker symbol FPS.