Forgent Power Solutions launched a public offering of 35 million Class A common shares. The company announced the transaction on June 29, 2026. The deal is structured as a mixed offering. Forgent is selling approximately 11.7 million shares directly. Existing stockholders controlled by Neos Partners, LP are selling roughly 23.3 million shares. Forgent will only receive proceeds from the primary shares it issues.
The offering will end the company's "controlled company" status under NYSE rules. This transition requires Forgent to adopt increased corporate governance standards. Underwriters hold an option to purchase up to 5.25 million additional shares. This purchase option expires in 30 days.
Forgent's stock fell more than 7% in after-hours trading. The decline reflects investor concerns over share dilution. The market also reacted to the large-scale divestment by its private equity backer.