Legence raises $780.2 million in IPO, begins trading on Nasdaq

SAN JOSE, Calif. - Engineering services provider Legence Corp. (NASDAQ:LGN) has completed its initial public offering of 29,487,627 shares of Class A common stock at $28.00 per share, raising approximately $780.2 million in net proceeds after underwriting discounts and commissions. The stock has shown strong momentum since its debut, with InvestingPro data showing a nearly 9% return in its first week of trading.

The company’s shares began trading on the Nasdaq Global Select Market on Friday under the ticker symbol "LGN." The offering included 26,000,000 shares initially offered, with underwriters partially exercising their option to purchase an additional 3,487,627 shares. The company now commands a market capitalization of $3.1 billion, with the stock trading at $30.50, above its IPO price.

Legence plans to use the proceeds to repay a portion of its outstanding borrowings under its term loan credit facility and for general corporate purposes, according to the company’s statement.

Goldman Sachs & Co. LLC and Jefferies served as joint lead book-running managers for the offering, with multiple financial institutions including BofA Securities, Barclays, Morgan Stanley, and RBC Capital Markets acting as bookrunners.

Legence provides engineering, consulting, installation, and maintenance services for building systems, specializing in HVAC, process piping, and mechanical, electrical and plumbing systems. The company focuses on enhancing energy efficiency and sustainability in facilities.

The company stated that its client base includes over 60% of the companies in the Nasdaq-100 Index.

The IPO was conducted through a registration statement on Form S-1 filed with and declared effective by the Securities and Exchange Commission, based on information provided in the company’s press release.

In other recent news, Legence Corp. has announced the pricing of its initial public offering (IPO) at $28 per share, aiming to raise approximately $688 million. This IPO involves 26 million shares of Class A common stock, and the company is set to begin trading on the Nasdaq Global Select Market. The anticipated net proceeds from this offering are expected after deducting underwriting discounts and commissions. Additionally, underwriters have been granted a 30-day option to purchase up to an additional 3.9 million shares at the initial offering price. The IPO is scheduled to close on September 15, pending customary closing conditions. These developments mark a significant milestone for Legence Corp. as it enters the public market.

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