Larry Gies' Madison Air targets $13.2 billion valuation in US IPO

By Arasu Kannagi Basil

April 6 (Reuters) - ‌Ventilation and ​filtration systems ​provider Madison Air Solutions said on Monday it was targeting a valuation of up to $13.2 billion in its U.S. initial public ‌offering, as companies continue to navigate challenging market conditions for new ⁠listings.

The Chicago, Illinois-based company is seeking up to $2.23 billion by offering roughly 82.7 million shares ‌priced between $25 and $27 apiece.

The U.S. ‌IPO market has struggled to gain traction over the past two months as prolonged market volatility linked to the ongoing Middle East conflict has ​slowed activity. Still, some corporate issuers, including defensible industrial names, have continued to steam ahead.

"Companies aren't moving ahead right now unless they have a compelling ⁠plan to deploy IPO proceeds," said Matt Kennedy, senior ‍strategist at Renaissance Capital, a provider of IPO-focused research ​and ETFs.

"This includes 'real economy' companies, like manufacturing, energy infrastructure, defense, and real estate. Particularly in areas that have tailwinds like AI-driven ​growth."

Madison Air has benefited from the explosive ‌data center buildout as the rapid growth of artificial intelligence fuels demand for advanced cooling equipment to manage heat from ⁠power-intensive servers.

Its brands include Nortek Air Solutions, Nortek Data Center Cooling and Big Ass Fans, which provide air quality and thermal management products for commercial, industrial and data ⁠center applications.

The industrial firm was formed under the leadership of Larry Gies, founder and CEO ​of privately held Madison Industries, through a series of acquisitions beginning in 2017, according to its website.

Cornerstone investors Durable Capital Partners, Morgan Stanley's Counterpoint Global, and HRTG GPE have ‌separately indicated interest in purchasing up to $525 million of shares in the offering.

Separately, Larry Gies' Madison Industries plans to buy $100 ‌million of Madison Air shares in a concurrent private placement.

Goldman Sachs, Barclays, Jefferies and ⁠Wells Fargo Securities are the ‌joint lead book-running managers. ​Madison Air will list on the NYSE under the symbol "MAIR".

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore and ‌Tasim Zahid)

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