Legence Targets $29.5B Valuation in US IPO Amid Market Recovery

Legence, a provider of engineering and maintenance services, has announced plans to pursue an initial public offering (IPO) in the United States, targeting a valuation of approximately 29.5 billion dollars. This move comes as the new stock market begins to regain activity following a summer slowdown. Legence, headquartered in San Jose, California, is part of Blackstone Group's investment portfolio. The company intends to raise up to 7.54 billion dollars by issuing 26 million shares, with a proposed price range of 25 to 29 dollars per share.

Blackstone Group, the world's largest alternative asset management company, acquired Legence from private equity firm Gemspring Capital in 2020. At the time, the company was known as Therma Holdings. Legence, with over a century of history, specializes in designing and installing heating, ventilation, and air conditioning (HVAC) systems, as well as providing solutions to enhance building energy efficiency and sustainability. Under Blackstone's management, Legence has acquired several smaller competitors, including A.O. Reed Company, OCI Associates, and P2S Company.

Legence's focus on high-growth sectors, such as data centers and life sciences, has positioned the company to capitalize on the increasing investment in data center infrastructure. As technology companies expand their facilities to support artificial intelligence and other advanced technologies, the demand for Legence's services has grown. By the end of June, Legence had 28 billion dollars in uncompleted orders and awarded contracts, with nearly 40% of its new construction projects in the data center sector.

Goldman Sachs and Jefferies Group will serve as the lead underwriters for the IPO, with Legence planning to list on the Nasdaq under the ticker symbol "LGN". The successful execution of this IPO will be a significant milestone for Legence and Blackstone, demonstrating their confidence in the company's future growth and market potential. As the IPO process unfolds, Legence will need to navigate regulatory requirements and market dynamics to ensure a successful public debut. With Blackstone's backing and Legence's established track record, the company is well-positioned to achieve its IPO goals and continue its expansion in the engineering and maintenance services sector.