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Additional details on the IPO and context in paragraphs 4 and 6
by Pragyan Kalita
Air systems provider Madison Air Solutions MAIR.N announced on Wednesday that it had raised $2.23 billion in the largest U.S. IPO since the beginning of the year.
The heating, ventilation, and air conditioning (HVAC) company based in Chicago, Illinois, sold 82.7 million shares in the IPO at $27 each, compared to the marketed price range of $25 to $27. The IPO valued it at $13.2 billion.
Investors showed appetite for infrastructure and data center-related companies, attracted by the increasing cooling and energy needs associated with AI expansion, amid geopolitical tensions in the Middle East that kept nervousness in the U.S. IPO market.
“Madison Air is a significant industrial company benefiting from tailwinds related to data center construction, which we have also seen before (e.g. Forgent Power Solutions, SOLV Energy),” said Matt Kennedy, Senior Strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
Madison Air estimates its products target a North American market of about $40 billion, where it holds around 8% share, with data centers being one of the fastest-growing verticals.
Prior to Madison Air, Forgent Power’s $1.74 billion offering in February was the largest U.S. IPO this year, according to Dealogic data.
Founded in 2017 through a series of acquisitions, Madison Air provides quality air solutions for residential and commercial customers across various sectors, including data centers, advanced manufacturing, education, and healthcare.
The company’s commercial business represented 66% of total revenue last year, with the rest coming from the residential segment.
Formerly known as Madison Indoor Air Quality, Madison Air was established under the leadership of Larry Gies, founder and CEO of private company Madison Industries. Its order backlog amounted to $2.02 billion as of December 31.
Goldman Sachs, Barclays, Jefferies, and Wells Fargo Securities served as joint bookrunners for the operation. Madison Air will begin trading on the New York Stock Exchange on Thursday under the symbol “MAIR”.
