Forgent Power Solutions Inc. NYSE:FPS and its private equity backer Neos Partners LP are preparing another major stock sale, offering about 35 million shares just months after Forgent went public in February. The transaction would include 23.3 million shares from Neos affiliates and 11.7 million shares from Forgent, with pricing expected late Wednesday, according to people familiar with the offering.
At Monday's closing price of $54.99, the sale could raise about $1.92 billion in aggregate. Forgent plans to use its proceeds to redeem equity interests in an operating partnership from Neos affiliates, which means Neos would receive all net proceeds from the transaction. Investors reacted cautiously, with Forgent shares falling 5.4% to $52.05 in after-hours trading in New York.
The offering follows Forgent's $1.74 billion IPO at $27 per share in February and a rally that pushed the stock to a high of $66 last week, supported by investor interest in companies tied to AI data center construction. The latest sale would leave Neos with about 40% voting power in Forgent, according to a filing, while Goldman Sachs Group, Jefferies Financial Group and Morgan Stanley are working on the offering.