Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 114

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 114
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800 restricted stock units and 724,710 stock options                                                                                                                                         
 under the 2025 Plan to certain employees and non-employee directors, including our named executive officers, assuming an initial public offering price of $27.00 per share, which is the midpoint of the estimated price range set forth on the cover 
 page of this prospectus, with the actual number of restricted stock units and stock options to be determined at the pricing of this offering. Each stock option granted as of the pricing of this offering will have an exercise price equal to the   
 initial public offering price in this offering. Each IPO Grant to employees will vest in three equal installments on each of the first, second and third anniversaries of the applicable vesting commencement date, subject generally to continued    
 employment through the applicable vesting date. Each IPO Grant to our non-employee directors will consist of restricted stock units and will fully vest on the sooner of the first                                                                    |

78

| anniversary of the applicable vesting commencement date or the day immediately preceding the Company’s 2026 annual shareholder meeting, subject generally to continued service through the 
 applicable vesting date. The grant date fair value of the stock options was determined using the Black-Scholes valuation model using the following assumptions:                            |

| Expected volatility      |     | 55.0 | % |
| Expected dividend yield  |     |  0.0 | % |
| Expected term (in years) |     |  6.0 |   |
| Risk-free interest rate  |     |  3.9 | % |

| j) | The basic and diluted pro forma earnings per share of Class A Common Stock represents net income                                                                                                                                                
 attributable to Legence divided by the combination of the shares owned by Existing Owners and the Class A Common Stock issued in this offering. The noncontrolling interest owners own shares of Class B Common Stock. These shares of          
 Class B Common Stock are not considered participating securities because they have no right to receive dividends or a distribution on liquidation or winding up of Legence, and no earnings are allocable to such class. Accordingly, basic and 
 diluted earnings per share of Class B Common Stock has not been presented. The table below presents the computation of pro forma basic and dilutive earnings per share for Legence (in thousands, except share and per share amounts):          |

|                                                                        |     |   |        Year Ended 
 December 31, 2024 |     |   | Six Months Ended 
    June 30, 202