Data center supplier Forgent Power slips on PE sponsor selldown
BUZZ-Data center supplier Forgent Power slips on PE sponsor selldown ** Shares of Forgent Power Solutions FPS.N down 2.2% before the bell to $48.73 after secondary offering news
** Minnesota-based maker of electrical distribution equipment used in data centers late Tues announced 35 mln share offering
** Private equity firm Neos Partners to offload ~23.7 mln shares, and FPS to use net proceeds it receives from sale of ~11.3 mln shares to indirectly purchase shares from Neos
** Goldman Sachs, Jefferies and Morgan Stanley are joint lead bookrunners
** Neos had reduced its stake in Mar secondary offering
** Prior to this offering, Neos owned ~67.5% of co's ~304.4 mln total shares outstanding, per the prospectus
** FPS went public in Feb IPO priced at $27
** 8 of 9 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $51, per LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
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