Feb 5 (Reuters) – Forgent Power was valued at nearly $8 billion in its New York Stock Exchange debut on Thursday, as investor appetite for companies catering to the AI boom remains robust despite pockets of worries that the market may have overheated.
The company braved significant market volatility this week to complete its listing. IPOs typically require stable market conditions, and a risk-off mood, particularly in high-growth sectors like technology, can deter investors.
Forgent, which designs and manufactures electrical distribution equipment used in data centers, and some of its existing shareholders sold 56 million shares in the IPO priced at $27 each, raising about $1.51 billion.
The IPO price was at the mid-point of its targeted range of $25 to $29 and valued it at about $8.2 billion, based on the number of outstanding shares listed in Forgent’s filings.
The push to train and run large models has driven demand for energy, cooling and power management equipment, prompting a sharp acceleration in data center construction and upgrades worldwide.
(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
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