Legence Sets Its Sights on the Public Markets

In a daring move signaling a revitalized IPO market, engineering and maintenance services powerhouse Legence is eyeing a stellar valuation of up to $2.95 billion through its forthcoming U.S. initial public offering (IPO). Based in San Jose, California, and backed by Blackstone, Legence announced its ambitious plans on Tuesday.

Aiming to Raise Significant Capital

The company is set to offer 26 million shares, projected to be priced between $25 and $29 each, potentially raising up to $754 million in the process. This comes at a time when excitement is returning to the new listings market following a summer lull.

Blackstone's Strategic Influence

A member of Blackstone's prestigious portfolio, Legence has been on a growth trajectory since being acquired from Gemspring Capital in 2020. Formerly known as Therma Holdings, the century-old company specializes in designing and installing essential systems, including heating, ventilation, air conditioning, and energy-efficient solutions.

Aggressive Expansion and Acquisitions

Under the strategic guidance of Blackstone, Legence has made a series of acquisitions, bolstering its market position by adding smaller firms like A.O. Reed, OCI Associates, and P2S to its arsenal.

Capitalizing on the Data Center Boom

Legence is strategically focusing on booming sectors with high technical demands, such as data centers and life sciences. As of June 30, 2023, the company boasts a staggering backlog of $2.8 billion in awarded contracts, with nearly 40% linked to data center projects—an area experiencing explosive growth due to rising investments aimed at supporting artificial intelligence infrastructure.

Key Players Driving the IPO

Goldman Sachs and Jefferies are spearheading the underwriting team for the IPO. Upon its launch, Legence will trade on the Nasdaq under the ticker symbol “LGN,” adding a significant player to the public market landscape.

The Future Looks Bright for Legence

As the IPO market ignites once again, Legence stands poised to capture investor interest, leveraging its robust backlog and industry-leading position. With the backing of Blackstone and a focus on high-demand sectors, this IPO could mark a pivotal moment in the company’s evolution.