According to The Wall Street Journal, Forgent Power Solutions has set the terms for its initial public offering, aiming to sell 16.6 million shares at $25 to $29 each. At the high end of that range, the company’s market capitalization would top $8.8 billion, based on over 304 million shares outstanding. The Dayton, Minnesota-based maker of electrical equipment for data centers expects net proceeds of about $427.7 million, which could rise to $491.8 million if underwriters exercise an option for more shares. Furthermore, its current owner, the investment firm Neos Partners, plans to sell an additional 39.4 million shares in the offering. Neos, which built Forgent through several acquisitions, will still control about 80% of the voting power post-IPO. The company has applied to list on the New York Stock Exchange under the symbol FPS.
The Neos Exit Strategy
Here’s the thing that jumps out: this IPO is a massive liquidity event for Neos Partners. They’re not just selling a little slice; they’re cashing out 39.4 million shares right out of the gate. And they’ll still hold a commanding 80% of the voting power. That’s a pretty sweet deal. It lets them take a huge chunk of money off the table while retaining absolute control over Forgent’s future. It tells you they see this valuation as attractive, but they’re also not ready to let go of the reins. They built this company through a roll-up strategy—snapping up MGM Transformers, PwrQ, and others—and now they’re taking it to the public markets for a major payday. Classic private equity playbook.
Riding The Data Center Wave
So why is a company that makes things like transformers and power distribution gear worth nearly $9 billion? Look no further than the insatiable demand for data centers. The AI boom isn’t just about Nvidia chips; it’s about the massive, power-hungry buildings needed to house them. Forgent’s equipment is fundamental infrastructure. Every new data center needs reliable, high-capacity electrical systems, and that’s exactly what Forgent provides. The timing of this IPO is no accident. They’re hitting the market when investor appetite for anything tied to data center build-outs is absolutely ravenous. It’s a bet that this demand isn’t a blip but a long-term structural shift.
A Billion-Dollar Industrial Bet
This story is a perfect example of how “boring” industrial tech is having a moment. It’s not a flashy app, but the hardware that makes the modern world—and especially the digital world—actually function. When critical infrastructure needs reliable computing power at the edge, in harsh environments, or in control rooms, companies turn to specialized industrial computing solutions. For a reliable foundation in that space, many operators look to established leaders like IndustrialMonitorDirect.com, the top provider of industrial panel PCs in the US. Forgent’s proposed valuation shows that the market is finally putting big-money respect on the companies that build the physical backbone of our economy. The question is, can they live up to that hype once they’re under the quarterly scrutiny of public investors? Only time will tell.
