Ingram Micro Holding Corp. (INGM) priced its IPO at $22.00 – $1.00 below the top of its $20.00-to-$23.00 price range – and sold the full 18.6 million shares – the number of shares in the prospectus – to raise $409.2 million on Wednesday night, Oct. 23, 2024. Ingram Micro’s stock is expected to start trading on Thursday, Oct. 24, 2024, on the New York Stock Exchange.
Ingram Micro, based in Irvine, California, describes itself as “a leading solutions provider by revenue for the global information technology (“IT”) ecosystem helping power the world’s leading technology brands,” according to the prospectus. Ingram Micro is profitable, with net income of $327.44 million on revenue of $47.82 billion for the 12 months that ended June 30, 2024.
Morgan Stanley, Goldman Sachs and J.P. Morgan led the joint book-runners’ team. BofA Securities, Deutsche Bank Securities, Evercore ISI, Jefferies, RBC Capital Markets and BNP Paribas also served as joint book-runners for Ingram Micro’s deal.
Ingram Micro plans to pay a quarterly dividend – 7.4 cents per share starting in the first quarter of 2025 – according to the prospectus.
Of the 18.6 million shares, the company offered 11.6 million shares and the selling shareholder (a Platinum Equity investment vehicle) offered 7.0 million shares.
Ingram Micro intends to use its portion of the IPO’s net proceeds of about $255.2 million to repay debt under its Term Loan Credit Facility.
In the prospectus, the company said that after the 2024 refinancing, it had $1.16 billion in debt outstanding under the Term Loan Credit Facility.
Capital World Investors, the cornerstone investor, had indicated an interest in buying up to $70 million – or up to 17.5 percent – of the stock in the IPO, according to the prospectus
Platinum Equity, a private equity firm, bought Ingram Micro in July 2021. After the IPO, Platinum Equity will still run Ingram Micro with its controlling stake of 90.8 percent of Ingram Micro’s outstanding shares, according to the prospectus.
Ingram Micro said in the prospectus:
“With our vast infrastructure and focus on client and endpoint solutions (formerly referred to as commercial & consumer, as described elsewhere in this prospectus), advanced solutions offerings and cloud-based solutions, we enable our business partners to scale and operate more efficiently in the markets they serve. We deliver customized solutions to our vendor, reseller and retailer partners, enabling them to provide excellent business outcomes to the companies and consumers they serve.
“Through our global reach and broad portfolio of products, professional services offerings, software, cloud and digital solutions, we remove complexity and maximize the value of the technology products our partners make, sell or use, providing the world more ways to realize the promise of technology. In the face of significant economic uncertainty and volatility in commercial markets globally, we believe that our business remains well-positioned to benefit from technology megatrends, including cloud migration, enhanced security, Internet-of-Things (“IoT”), hybrid work and 5G.”
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