Home / Business and Economy / Forgent Power Shares Drop After New Offering
Forgent Power Shares Drop After New Offering
25 Mar
Summary
- Forgent Power and shareholders offered 30 million shares.
- The offering could raise approximately $1.07 billion.
- Forgent designs equipment for data centers.
Forgent Power Solutions Inc. and certain shareholders are proposing to sell an aggregate of 30 million shares. This comes just over six weeks after the company's initial public offering, which had raised $1.7 billion. Shareholders affiliated with Neos Partners are offering 20.7 million shares, while the company itself is selling 9.31 million shares.
At Tuesday's closing price of $35.78 per share, this offering is valued at approximately $1.07 billion. Following the announcement, Forgent's stock saw a 9.3% decrease in after-hours trading, closing at $32.45. The company specializes in designing, manufacturing, and selling equipment like transformers and switchboards vital for data centers. These facilities depend on reliable power, making Forgent's products essential for sustained operations, especially with the ongoing AI spending boom.
The company plans to use its proceeds to indirectly purchase units from Forgent Power Solutions LLC, which in turn will acquire them from different Neos affiliates. Goldman Sachs Group Inc., Jefferies Financial Group Inc., and Morgan Stanley are managing this share sale.
