Forgent Power Solutions Inc. has filed to go public on the New York Stock Exchange under the ticker symbol FPS, according to a company filing. The proposed offering totals 56 million shares of Class A common stock.
Of the 56 million shares, Forgent Power Solutions will sell 16,586,823 shares. Two selling stockholders identified as Forgent Parent I LP and Forgent Parent IV LP plan to offer the remaining 39,413,177 shares.
The company has indicated an estimated initial public offering price range of $25.00 to $29.00 per share. The filing notes that there is no existing public market for the company’s Class A common stock at this time.
Forgent Power Solutions said it intends to use the net proceeds from the shares it sells to purchase common units of Forgent Power Solutions LLC. The LLC subsidiary will use the cash from those unit purchases to redeem units currently held by Forgent Parent II LP and Forgent Parent III LP.
The filing makes clear that Forgent Power Solutions will not receive any proceeds from the shares that the selling stockholders offer. Underwriters on the transaction have an option to buy additional shares. If that overallotment option is exercised in full, the company’s unit purchases could rise to 19,074,846 common units.
Summary of the filing:
- Total offering size: 56,000,000 Class A common shares.
- Shares offered by the company: 16,586,823.
- Shares offered by selling stockholders (Forgent Parent I LP and Forgent Parent IV LP): 39,413,177.
- Estimated IPO price range: $25.00 to $29.00 per share.
- No existing public market for the Class A common stock.
- Planned use of company proceeds: purchase of common units of Forgent Power Solutions LLC, with those proceeds used to redeem units held by Forgent Parent II LP and Forgent Parent III LP.
- Underwriters may increase the transaction through an option that, if fully exercised, would increase unit purchases to 19,074,846 common units.
This filing outlines the mechanics of the proposed transaction and the flow of proceeds between the public entity, its LLC subsidiary, and several existing private owners. The document also distinguishes between proceeds the company will receive and the sale of shares by existing holders from which the company will not receive proceeds.