Forgent Power slips as PE backer cuts stake in $885 mln secondary offering

Electrical equipment maker Forgent Power Solutions FPS.N shares down 1% at $29.77 early Fri after $885 mln secondary offering prices less than two months since going public

Minnesota-based FPS early Fri announced 30 mln shares at $29.50, a 1.8% discount to stock's last close

FPS stock shed 16% over the prior two sessions after co announced the offering

Private equity firm Neos Partners offloaded 20.7 mln shares, while the designer and maker of electrical distribution equipment used in data centers sold 9.3 mln shares

Co to use net proceeds it receives to indirectly purchase shares from entities controlled by Neos

FPS debuted on Feb 5 after 56 mln share IPO priced at $27, in which Neos sold 39.4 mln shares

This latest offering reduces California-based Neos' stake by ~10% to ~69%, not including any exercise of the overallotment option, per the prospectus

Goldman Sachs, Jefferies and Morgan Stanley joint lead bookrunners for offering, as they were for the IPO

8 of 9 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $44