Forgent Power (FPS) Soars 7.4% on Market Debut as Firm Rides AI Boom

We recently published 10 Stocks Withstanding Market Turbulence. Forgent Power Solutions Inc. (NYSE:FPS) was one of the best performers on Thursday.

Forgent Power jumped by 7.41 percent in its first day as a publicly listed company as investors snapped up shares amid an overall optimism for the artificial intelligence sector.

During the session, the stock opened at $26, or 3.7 percent lower than its initial public offering (IPO) price of $27 before gaining ground to finish the day higher at $29 apiece.

The company successfully raised $1.5 billion in fresh funds from the sale of 56 million shares, consisting of more than 39.4 million from its parent firm, controlled by Neos Partners LP, and another 16.5 million offered by the newly listed firm itself.

In addition, the selling stockholders and Forgent Power Solutions Inc. (NYSE:FPS) granted its underwriters a 30-day option to purchase an additional 8.4 million shares at the IPO price.

Forgent Power Solutions Inc. (NYSE:FPS) said that it will not receive any proceeds from the share sale from its selling stockholders, while the proceeds it will receive will be used to redeem interests in an operating subsidiary held by certain existing equity owners controlled by Neos Partners LP.

The operating subsidiary will bear or reimburse the company for all of the expenses of the offering.

Forgent Power Solutions Inc. (NYSE:FPS) is engaged in the design and production of electrical distribution equipment for data centers, power grid and energy-intensive industrial facilities. It specializes in manufacturing custom products that are “engineered-to-order” for technically demanding applications.

While we acknowledge the potential of FPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.