Summary: Shares of Ingram Micro Holding fell 12.8% in premarket trading to $22.98 on Friday after the company disclosed that its sponsor, Platinum Equity, had priced a secondary offering. The sponsor offered approximately 9 million shares at $22.25 per share, producing $200 million in gross proceeds, and the company will buy back $75 million of shares from Platinum with existing cash.
Ingram Micro, the Irvine, California-based distributor of IT products, cloud solutions and supply chain services, saw its stock decline after the secondary offering was priced. The $22.25 offering price was set at a 15.6% discount to the stock's prior closing price, and the move prompted a 12.8% premarket drop to $22.98.
The filing disclosed that Platinum owned approximately 211 million shares before the sale, representing about 90% of the company's roughly 235 million shares outstanding, according to the prospectus. The sale of roughly 9 million shares by the sponsor will generate roughly $200 million in gross proceeds for Platinum at the stated offer price.
Separately, Ingram Micro will use cash on hand to repurchase $75 million worth of shares from Platinum. The prospectus details show the company arranging that repurchase in parallel with the sponsor's offering.
Morgan Stanley, Goldman Sachs and JP Morgan served as joint bookrunners for the offering, according to the disclosure. Through Thursday, before the move, Ingram Micro's stock had gained 23.5% year-to-date, including an approximate 27% rise during the most recent week.
The sequence of filings and the pricing of the sponsor's secondary stake were clearly reflected in market action in premarket trading on Friday, where the share price moved to $22.98 following the announcement of the offering and the planned company repurchase.
Contextual note: The information above is drawn from the company's disclosures as presented in the prospectus and premarket trading data cited in the filing.