Ingram Micro Announces Pricing of Its Initial Public Offering
Wednesday, Oct 23, 2024 8:26 pm ET
2min read Ingram Micro Holding Corporation ("Ingram Micro") has announced the pricing of its initial public offering (IPO), set to debut on the New York Stock Exchange (NYSE) under the ticker symbol "INGM." The company is offering 18,600,000 shares of its common stock at a public offering price of $22.00 per share. This offering consists of 11,600,000 shares offered by Ingram Micro and 7,000,000 shares to be sold by certain of its existing stockholders.
Ingram Micro will not receive any proceeds from the sale of the shares by the selling stockholder. The shares of Ingram Micro's Common Stock are expected to begin trading on the NYSE on October 24, 2024, and the offering is expected to close on October 25, 2024, subject to customary closing conditions. Ingram Micro will receive net proceeds of approximately $233.1 million after deducting underwriting discounts and commissions and estimated offering expenses. The company intends to use the net proceeds from the offering to repay a portion of the outstanding borrowings under its term loan credit facility.
Ingram Micro is a leading technology company for the global information technology ecosystem. With the ability to reach nearly 90% of the global population, it plays a vital role in the worldwide IT sales channel, bringing products and services from technology manufacturers and cloud providers to business-to-business technology experts. Through Ingram Micro Xvantage™, its AI-powered digital platform, it delivers a singular business-to-consumer-like experience. The company also provides a broad range of technology services, including financing, specialized marketing, and lifecycle management, as well as technical pre- and post-sales professional support.
Ingram Micro's IPO valuation aligns with its historical financial performance and market position. The company's strategic focus on digital transformation and AI development has positioned it well in the competitive IT distribution industry. Its IPO is expected to have a positive impact on its competitors, as it signals a growing interest in the sector and the potential for increased investment and innovation.
Ingram Micro's IPO also has implications for its majority shareholder, Platinum Equity. Although Platinum Equity will still control Ingram Micro with a stake of about 90 percent after the IPO, its influence on strategic decision-making may be somewhat reduced. However, this majority stake allows Platinum Equity to maintain significant control over the company's direction and ensure its continued success. The potential benefits of Platinum Equity's involvement include access to its extensive resources and expertise, as well as the ability to attract and retain top talent. However, there may also be drawbacks, such as a lack of independence and the potential for conflicts of interest.
In conclusion, Ingram Micro's IPO is a significant milestone for the company and the broader IT distribution industry. Its strategic focus on digital transformation and AI development has positioned it well for future growth and success. The company's IPO valuation aligns with its historical financial performance and market position, and its IPO is expected to have a positive impact on its competitors and the industry as a whole. Platinum Equity's continued involvement in the company may have both benefits and drawbacks, but its majority stake ensures that it will maintain a significant influence over Ingram Micro's strategic direction.
Ingram Micro will not receive any proceeds from the sale of the shares by the selling stockholder. The shares of Ingram Micro's Common Stock are expected to begin trading on the NYSE on October 24, 2024, and the offering is expected to close on October 25, 2024, subject to customary closing conditions. Ingram Micro will receive net proceeds of approximately $233.1 million after deducting underwriting discounts and commissions and estimated offering expenses. The company intends to use the net proceeds from the offering to repay a portion of the outstanding borrowings under its term loan credit facility.
Ingram Micro is a leading technology company for the global information technology ecosystem. With the ability to reach nearly 90% of the global population, it plays a vital role in the worldwide IT sales channel, bringing products and services from technology manufacturers and cloud providers to business-to-business technology experts. Through Ingram Micro Xvantage™, its AI-powered digital platform, it delivers a singular business-to-consumer-like experience. The company also provides a broad range of technology services, including financing, specialized marketing, and lifecycle management, as well as technical pre- and post-sales professional support.
Ingram Micro's IPO valuation aligns with its historical financial performance and market position. The company's strategic focus on digital transformation and AI development has positioned it well in the competitive IT distribution industry. Its IPO is expected to have a positive impact on its competitors, as it signals a growing interest in the sector and the potential for increased investment and innovation.
Ingram Micro's IPO also has implications for its majority shareholder, Platinum Equity. Although Platinum Equity will still control Ingram Micro with a stake of about 90 percent after the IPO, its influence on strategic decision-making may be somewhat reduced. However, this majority stake allows Platinum Equity to maintain significant control over the company's direction and ensure its continued success. The potential benefits of Platinum Equity's involvement include access to its extensive resources and expertise, as well as the ability to attract and retain top talent. However, there may also be drawbacks, such as a lack of independence and the potential for conflicts of interest.
In conclusion, Ingram Micro's IPO is a significant milestone for the company and the broader IT distribution industry. Its strategic focus on digital transformation and AI development has positioned it well for future growth and success. The company's IPO valuation aligns with its historical financial performance and market position, and its IPO is expected to have a positive impact on its competitors and the industry as a whole. Platinum Equity's continued involvement in the company may have both benefits and drawbacks, but its majority stake ensures that it will maintain a significant influence over Ingram Micro's strategic direction.
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