Minnesota-based Forgent Power Solutions, backed by Neos Partners, is aiming for a $1.62 billion initial public offering in the U.S. The company plans to sell 56 million shares, priced between $25 and $29 each. At the high end, Forgent would be valued around $8.8 billion. The IPO reflects soaring demand for electrical equipment used in AI data centers.

Forgent designs and manufactures essential electrical equipment like transformers and power distribution units. This equipment is critical for the continuous operation of data centers. The company reported $10 million in net income on $283 million in revenue for the three months ending September, demonstrating strong growth. Goldman Sachs, Jefferies, and Morgan Stanley are leading the offering.

The IPO arrives as the demand for power solutions for data centers surges, driven by the rapid expansion of artificial intelligence. Neos Partners, which formed Forgent in 2023 through acquisitions, will retain majority voting power. The shares are expected to trade on the NYSE under the ticker FPS.

This offering is a sign of the booming data center market. Investors are closely watching the growth of companies that support the infrastructure behind AI. The success of Forgent's IPO will be a key indicator of market confidence in the sector, and potentially a bellwether for similar deals.