Neos-Backed Forgent Seeks $1.62bn IPO as AI Infrastructure Spending Accelerates

Forgent Power Solutions, backed by private equity firm Neos, has filed for an initial public offering in the United States, targeting proceeds of up to $1.62 billion, according to regulatory filings. The proposed listing aims to capitalise on rising investment in AI-driven data centres, with the company seeking to fund expansion and strengthen its balance sheet amid growing power demand.

IPO Filing Signals Confidence in AI-Linked Demand

The planned IPO would mark a significant milestone for Forgent, a provider of power solutions used in data centres and other energy-intensive facilities. According to people familiar with the transaction, the company intends to list its shares on a US exchange, positioning itself as a key beneficiary of structural growth tied to artificial intelligence and cloud computing.

Sources say the fundraising target reflects strong investor appetite for businesses exposed to AI infrastructure, particularly those addressing power reliability and efficiency. As data centre operators scale up capacity to support advanced computing workloads, demand for specialised power equipment has increased sharply, benefiting suppliers such as Forgent.

The offering would also represent a partial realisation for Neos, which has supported the company’s expansion strategy in recent years. While the private equity firm is expected to retain a significant stake post-IPO, the listing would provide liquidity and establish a public market valuation for the business.

Market observers note that timing has been a key consideration. After a subdued period for equity capital markets, IPO activity has shown signs of recovery, especially for companies with clear exposure to long-term growth themes such as AI, digital infrastructure, and electrification.

Proceeds to Support Expansion and Balance Sheet Strength

According to the prospectus, Forgent plans to use the proceeds primarily to invest in manufacturing capacity, research and development, and working capital. The company is also expected to allocate part of the funds toward debt reduction, which could improve financial flexibility as it scales operations.

Forgent’s product portfolio focuses on power generation, distribution, and management systems designed for mission-critical environments. These solutions are increasingly in demand as data centres grow in size and complexity, requiring resilient infrastructure to minimise downtime and manage rising energy loads.

People close to the business say Neos has worked with management to professionalise operations and position the company for public markets. This has included investments in governance, reporting systems, and operational processes, aligning the platform with investor expectations for listed industrial and infrastructure-adjacent companies.

The IPO structure is still subject to market conditions, and final pricing will depend on investor feedback during the roadshow process. Nonetheless, sources suggest the targeted valuation reflects optimism around medium-term earnings growth driven by continued AI adoption and capital spending by hyperscale data centre operators.

Private Equity and AI Infrastructure: A Broader Trend

Forgent’s planned listing comes amid a wider wave of private equity-backed companies tapping public markets to monetise exposure to AI-related infrastructure. Power supply, cooling, and connectivity have become critical bottlenecks in the expansion of digital infrastructure, drawing increased attention from financial sponsors.

Neos’ investment in Forgent fits within this broader thematic approach, focusing on assets that benefit from long-duration demand trends rather than short-term cycles. Industry analysts note that while AI-driven growth is expected to remain strong, companies operating in this space must also manage execution risks, including supply chain constraints and regulatory scrutiny around energy use.

The US remains a central market for data centre development, supported by deep capital markets and a large base of technology customers. As a result, US listings are often seen as the most effective route for infrastructure-linked businesses seeking scale and visibility.

Forgent Power Solutions’ move toward a $1.62 billion IPO underscores growing investor interest in companies aligned with AI and data centre expansion. Backed by Neos, the company is positioning itself to leverage sustained demand for reliable power infrastructure while providing its sponsor with a pathway to partial exit. While market conditions will ultimately shape the outcome, the filing highlights how private equity-backed platforms are increasingly turning to public markets to fund growth and crystallise value in AI-driven sectors.