Engineering and maintenance services provider Legence Corp. (LGN.US) is scheduled to officially debut on NASDAQ tonight, issuing 26 million shares at $28 per share, raising a total of $728 million, slightly above the midpoint of the $25-29 price range. Based on this offering price, the San Jose, California-headquartered company will achieve a market valuation of $2.9 billion.
Legence Corp. specializes in high-tech construction within high-growth industries, with operations spanning technology (particularly data centers), life sciences, healthcare, and education sectors. The company's client base includes over 60% of NASDAQ 100 constituent companies. With more than a century of operating history, the company's core business encompasses HVAC system design and installation, along with solutions that enhance building energy efficiency and sustainability.
The IPO is being managed by 19 joint bookrunners, including Goldman Sachs, Jefferies, Bank of America Securities, Barclays, and Morgan Stanley.
From a financial perspective, the company generated $2.2 billion in revenue over the past 12 months ending June 30, 2025. Additionally, the total value of incomplete orders and awarded contracts reaches $2.8 billion.
Notably, Blackstone Group LP acquired Legence Corp. (then known as Therma Holdings) from private equity firm Gemspring Capital in 2020. Through strategic acquisitions of smaller competitors including A.O. Reed, OCI Associates, and P2S, Blackstone transformed the company from a regional HVAC contractor into a national energy services platform, effectively doubling its valuation.
This IPO comes at an opportune time, coinciding with favorable U.S. building energy efficiency policies and AI infrastructure investment trends. As an ESG-focused stock, Legence Corp. represents a rare opportunity to capitalize on the multi-hundred-billion-dollar North American building decarbonization and data center expansion market.
Over the next three years, the company's ability to maintain compound annual growth rates exceeding 15% will depend on its merger and acquisition integration capabilities and the actual execution speed of data center orders, which will become key focal points for secondary market investors.