Data center supplier Forgent Power falls as PE sponsor offloads
BUZZ-Data center supplier Forgent Power falls as PE sponsor offloads ** Forgent Power Solutions' FPS.N shares down 1.3% to $49.24 premarket on Thurs after ~$2.1 bln secondary offering priced
** FPS, which manufactures electrical distribution equipment used in data centers, late Weds announced 43.65 mln shares at $49
** Offering priced at 1.8% discount to last sale
** Private equity firm Neos Partners offloaded ~29.1 mln shares; FPS to use net proceeds it receives from sale of ~14.6 mln shares to purchase shares from Neos
** Co late Mon launched 35 mln share offering after its stock closed at $54.99
** Goldman Sachs, Jefferies and Morgan Stanley are joint lead bookrunners
** Neos in May cut its stake in $2 bln secondary offering, and in March following Forgent's Feb IPO, which priced at $27
** Prior to this offering, Neos owned ~51% of the voting power in FPS, per the prospectus; Co has ~304.4 mln total shares outstanding
** 7 of 8 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $60, per LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))