Madison Air Solutions raised $2.23 billion in an initial public offering that stands as the largest U.S. IPO recorded so far this year. The Chicago, Illinois-based heating, ventilation and air conditioning company sold 82.7 million shares at $27 each, at the top end of the marketed range of $25 to $27, producing a market valuation of $13.2 billion.
Investor appetite has been strong for companies tied to infrastructure and data center needs, driven in part by rising cooling and power demands associated with expanded artificial intelligence deployments. That interest has persisted even as geopolitical tensions in the Middle East have left the broader U.S. IPO market on edge.
"Madison Air is a large industrial with tailwinds from data center buildouts, something we’ve also seen before (e.g. Forgent Power Solutions, SOLV Energy)," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
In its regulatory filing, Madison Air estimated it addresses a roughly $40 billion North American market and stated it holds approximately an 8% share. The company identified data centers as one of the faster-growing verticals for its products.
Prior to Madison Air’s offering, the largest U.S. IPO this year had been Forgent Power’s $1.74 billion deal in February, based on data compiled by Dealogic. Madison Air was built from a series of acquisitions beginning in 2017 and supplies indoor air quality and related systems to both residential and commercial customers across sectors that include data centers, advanced manufacturing, education, and health care.
Last year the company’s commercial operations generated 66% of total sales, with the residential segment accounting for the balance. As of December 31, Madison Air reported a backlog of $2.02 billion.
The company, which previously operated under the name Madison Indoor Air Quality, was formed under the leadership of Larry Gies, founder and CEO of privately held Madison Industries. Goldman Sachs, Barclays, Jefferies and Wells Fargo Securities served as the joint lead book-running managers for the IPO.
Madison Air is scheduled to begin trading on the New York Stock Exchange on Thursday under the ticker symbol "MAIR."
Sectors impacted: Industrial HVAC, data center infrastructure, commercial construction and residential air quality markets.