Electrical equipment maker Forgent Power discloses revenue jump in US IPO paperwork

By Prakhar Srivastava

Jan 9 (Reuters) - Electrical equipment maker Forgent Power Solutions reported an 83.9% surge in quarterly revenue in its filing for a U.S. initial public offering on Friday, as more issuers seek to gauge investor interest early this year.

IPOs are likely to gain momentum in 2026 as anticipated interest rate cuts bolster investor confidence and appetite for risk.

Filing now also makes sense because market attention later in the year is likely to shift to several larger, highly anticipated IPOs, making early visibility an advantage, said Kat Liu, a vice president at IPOX.

"Industry peers such as Vertiv have performed very well, which may also provide a constructive backdrop," she added.

Activity has begun to pick up, with biopharmaceutical companies Eikon Therapeutics and Veradermics, as well as furniture retailer Bob's Discount Furniture filing for U.S. IPOs on Friday. Digital bank PicPay filed earlier this week, as the market begins to stir after the holiday season.

Forgent Power aims to list on the New York Stock Exchange under the ticker symbol "FPS".

The Dayton, Minnesota-headquartered company reported a net income of $15.6 million on $283.3 million revenue for the quarter ended September 30, compared with a profit of $7.3 million on $154 million revenue in the same period a year earlier.

"In Forgent's case, margins can be sensitive to raw material and component costs (such as steel, copper, and electrical components), supply-chain availability, and the company's ability to pass higher input costs through to customers on a timely basis," Liu said.

"Other risks include exposure to cyclical end-markets such as data centers and industrial infrastructure, and competitive pressure from larger, well-capitalized peers."

Forgent Power is a designer and manufacturer of electrical distribution equipment used in data centers, the power grid and energy-intensive industrial facilities, offering panelboards, switchboards and power distribution units, among other electrical products.

Goldman Sachs, Jefferies and Morgan Stanley are the lead underwriters for the offering.