AI Data Center Power Stock FPS, Market Cap Drops 600 Billion in a Day Amid IPO Hype

Forgent Power Solutions, Inc. (FPS) fell 5.88% to close at $33.79 on the New York Stock Exchange on the 20th. About 3 million shares traded that day, erasing roughly $430 million (₩580–590 billion) from its market capitalization, which had stood at about $7.8 billion (₩10 trillion).

Despite the decline, the stock remains about 25% above its $27 IPO price from early February, suggesting some investors may be locking in gains after a recent run-up. In its Form 10-Q filed March 16, FPS reported significant year-over-year increases in revenue and backlog in its first quarterly results post-IPO, and it said a large-scale debt refinancing had strengthened its balance sheet. However, earnings and cash flow fell short of investor expectations.

Parent company Neos Partners is also facing litigation over ownership of MGM Transformers, acquired in 2023, in a dispute involving up to $200 million (₩270 billion) in equity—another potential headwind.

Forgent Power Solutions was created by private equity firm Neos Partners as a platform combining transformer and switchgear businesses—including MGM Transformers, PwrQ, States Manufacturing and VanTran—to design and manufacture customized power distribution equipment for data centers, power grids and industrial facilities. In 2025, the company appointed former Vertiv executive Gary Niederfruhm as CEO. Its February 2026 New York listing raised about $1.5 billion (₩2 trillion), positioning FPS as a beneficiary of the AI data-center infrastructure boom.