CALIFORNIA: Ingram Micro Holding Corp and its backer Platinum Equity raised US$409mil in an initial public offering (IPO) priced within the marketed range.
The Irvine, California-based technology company and Platinum sold 18.6 million shares on Wednesday for US$22 each after offering them for US$20 to US$23, according to a statement.
At the IPO price, the company has a market value of about US$5.2bil based on the outstanding shares listed in its filing with the US Securities and Exchange Commission.
The offering is much smaller than the US$1bil Bloomberg News reported that the company had been seeking.
Ingram Micro is selling 11.6 million shares in the IPO while Platinum Equity is selling seven million, according to the statement. The company plans to use proceeds to help pay down a portion of its debt.
Founded in 1979, Ingram Micro offers technology, hardware and services, and its own digital platform, Ingram Micro Xvantage, according to the filings.
Platinum Equity will continue to control almost 90% of Ingram Micro’s shares after the offering, the filings show.
The company expects net income of US$73mil to US$77mil on net sales of about US$12bil in the 13 weeks ended Sept 28, versus US$87mil in net income on net sales of almost US$12bil in the same period a year earlier, according to its filings.
Platinum Equity agreed to acquire Ingram Micro from debt-laden Chinese conglomerate HNA Group Co in 2020 for about US$7.2bil. — Bloomberg
