HVAC firm Madison Air raises $2.2 billion in US IPO
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A Wall Street plate is seen on a street vendor stall outside the New York Stock Exchange (NYSE) in New York City, U.S., July 11, 2025. REUTERS/Jeenah Moon
By Pragyan Kalita
April 15 (Reuters) - Indoor air systems provider Madison Air Solutions said on Wednesday it had raised $2.23 billion in the biggest U.S. initial public offering so far this year.
The Chicago, Illinois-based heating, ventilation and air conditioning (HVAC) firm sold 82.7 million shares in the IPO at $27 each, compared with the marketed range of $25 to $27. The IPO valued it at $13.2 billion.
Investors have shown appetite for infrastructure and data center-linked businesses, drawn by rising cooling and power needs from AI expansion, amid geopolitical tensions in the Middle East that have kept the broader U.S. IPO market in jitters.
"Madison Air is a large industrial with tailwinds from data center buildouts, something we've 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 address a roughly $40 billion North American market, where it holds about an 8% share, according to its filing, with data centres among the faster‑growing verticals.
Before Madison Air, Forgent Power's $1.74 billion offering in February was the biggest U.S. IPO this year, according to data compiled by Dealogic.
Founded in 2017 through a series of acquisitions, Madison Air provides air quality solutions for residential and commercial clients across a range of sectors, including data centers, advanced manufacturing, education, and health care.
The company's commercial business accounted for 66% of total sales last year, with the remainder coming from the residential segment.
Madison Air, formerly known as Madison Indoor Air Quality, was formed under the leadership of Larry Gies, the founder and CEO of privately held Madison Industries. It had a backlog of $2.02 billion, as of December 31.
Goldman Sachs, Barclays, Jefferies and Wells Fargo Securities were the joint lead book-running managers. Madison Air will begin trading on the NYSE on Thursday under the symbol "MAIR".
(Reporting by Pragyan Kalita in Bengaluru and Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)
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