Forgent Power Solutions Inc. and its private equity backer Neos Partners LLP are selling roughly 35 million shares, according to a Bloomberg report. This marks the third secondary offering since the power distribution equipment maker went public in February. Shares have doubled since the IPO, prompting the selling.
The offering comes as the company seeks to capitalize on strong demand for power infrastructure equipment. Neos Partners, which backed the firm before its public debut, is using the sale to realize gains after the stock's sharp rise. The exact pricing terms of the offering were not disclosed, though the stock dipped on the news.
Investors are watching the secondary closely, as large insider sales can signal peaking confidence. The broader power equipment sector has rallied this year on the back of grid modernization spending and AI data center buildout. Forgent's competitors include Eaton and Vertiv, which have also seen elevated valuations.
Analysts have mixed views. Some argue the sale is a natural step for a private equity exit, not a bearish signal. Others caution that heavy insider selling, especially the third in five months, may cap further upside for the stock.