Forgent Power slips as PE backer cuts stake in $885 mln secondary offering

Forgent Power Solutions

27/03/2026 14:48

** Electrical equipment maker Forgent Power Solutions FPS.N shares down 1% at $29.77 early Fri after $885 mln secondary offering prices less than two months since going public

** Minnesota-based FPS early Fri announced 30 mln shares at $29.50, a 1.8% discount to stock's last close

** FPS stock shed 16% over the prior two sessions after co announced the offering

** Private equity firm Neos Partners offloaded 20.7 mln shares, while the designer and maker of electrical distribution equipment used in data centers sold 9.3 mln shares

** Co to use net proceeds it receives to indirectly purchase shares from entities controlled by Neos

** FPS debuted on Feb 5 after 56 mln share IPO priced at $27, in which Neos sold 39.4 mln shares

** This latest offering reduces California-based Neos' stake by ~10% to ~69%, not including any exercise of the overallotment option, per the prospectus

** Goldman Sachs, Jefferies and Morgan Stanley joint lead bookrunners for offering, as they were for the IPO

** 8 of 9 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $44

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))