Blackstone-backed Legence made its Nasdaq debut on Friday, closing its first day of trading at a $3.2bn market valuation after raising $728m in its IPO, according to a report by Reuters.

Shares in the San Jose-based engineering and maintenance firm opened below their $28 offer price but rebounded to finish at $30.50, 12% higher. The offering adds to one of the busiest post-Labor Day IPO waves since 2021.

Blackstone, which acquired Legence from Gemspring Capital in 2020, will retain about 74% of voting rights following the flotation. The firm has said it is pursuing its most active pipeline of IPOs in four years.

Legence generated $1.1bn in revenue in the first half of 2025 but posted a net loss of $26.5m, wider than the $8.8m loss recorded a year earlier. The company focuses on designing and installing heating, ventilation, and energy-efficiency systems for technically demanding buildings such as laboratories, life sciences facilities, and data centres.

“Data centres have been a growing segment of our business for the last several years, especially as the technology that is used to cool servers in hyperscaler AI data centres has switched from air-cooled systems to direct liquid to chip systems, which really is right in our wheelhouse,” said Legence CEO Jeffrey Sprau.

While private equity-backed IPOs have faced scepticism after lacklustre performances from other sponsors’ listings, Legence’s debut demonstrates continued investor appetite for businesses aligned with growth sectors like AI infrastructure.

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