Forgent Power (FPS) Stock Debuts on NYSE Below IPO Price

Forgent Power Solutions Begins Trading Below IPO Price

Forgent Power Solutions, a designer and manufacturer of electrical distribution equipment, commenced trading on the New York Stock Exchange on Thursday at $26 per share. This opening price was below its initial public offering price of $27 per share.

Overview of the Offering

The company, trading under the ticker NYSE:FPS, priced its IPO on Wednesday. The offering consists of 39,413,573 shares from parent entities controlled by Neos Partners, LP, and 16,586,427 shares from Forgent itself. The company specializes in equipment for data centers, power grids, and energy-intensive industrial facilities.

Financial and Market Impact

Forgent will not receive any proceeds from shares sold by the selling stockholders. Net proceeds from its portion of the share sales will be used to redeem interests in an operating subsidiary. The IPO's closing is expected to occur on Friday, subject to customary closing conditions. The offering is managed by a syndicate of financial institutions, with Goldman Sachs, Jefferies, and Morgan Stanley serving as joint lead book-running managers.

Summary

The stock's performance below its IPO price will be closely monitored as the offering formally closes. Underwriters have been granted a 30-day option to purchase up to an additional 8,400,000 shares at the initial offering price, a factor that could influence near-term trading activity.

FAQ

Q: What is Forgent Power Solutions' stock ticker?
A: The company trades on the New York Stock Exchange under the ticker NYSE:FPS.

Q: What was the IPO price versus the opening trade price for Forgent Power Solutions?
A: The initial public offering was priced at $27 per share, while the stock began trading at $26 per share.

Q: Who are the lead underwriters for the FPS IPO?
A: The joint lead book-running managers for the offering are Goldman Sachs & Co. LLC, Jefferies, and Morgan Stanley.

Source: Investing.com