Ingram Micro, a leading technology products distributor, is set to go public again in the U.S. after nearly a decade, targeting a valuation of up to $5.42 billion. This move highlights a resurgence in private-equity-backed stock market listings, driven by favorable market conditions and strong demand.
Key Takeaways
Ingram Micro is offering 11.6 million shares, with parent company Platinum Equity selling 7 million shares.
The share price is expected to range between $20 and $23, aiming to raise up to $427.8 million.
Platinum Equity will retain a controlling 90.8% stake post-IPO.
The company plans to use the proceeds primarily to repay debt.
Background of Ingram Micro
Founded in 1979 as a small computer products distributor named Micro D, Ingram Micro has evolved into one of the world's largest technology distributors. The company distributes a wide array of products and services, including smartphones and computers, from over 1,500 vendors to more than 161,000 clients worldwide.
Market Context
The decision to go public comes at a time when private equity firms are capitalizing on favorable market conditions. Recent successful IPOs, such as those of StandardAero and KinderCare Learning, have encouraged buyout firms to list their portfolio companies.
Josef Schuster, CEO of IPOX, noted that this is a strategic move for private equity firms to exit ahead of potential economic or political uncertainties, particularly with the upcoming U.S. elections.
Financial Details
Ingram Micro's IPO will consist of:
Total Shares Offered: 11.6 million shares
Shares Sold by Platinum Equity: 7 million shares
Expected Price Range: $20 - $23 per share
Total Capital Raised: Up to $427.8 million
Investment manager Capital World Investors has expressed interest in purchasing shares worth up to $70 million.
Historical Context
Ingram Micro first went public in 1996 and traded on the New York Stock Exchange until 2016, when it was acquired by China-based HNA Group for $6 billion. In 2021, Platinum Equity acquired Ingram from HNA for $7.2 billion. Ingram also divested a significant portion of its commerce and lifecycle services business to CMA CGM Group in a $3 billion deal in 2022.
Future Outlook
Post-IPO, Ingram Micro will list on the NYSE under the symbol "INGM". The offering is being led by major financial institutions, including Morgan Stanley, Goldman Sachs, and J.P. Morgan Securities. With a strong market presence and a solid plan for debt repayment, Ingram Micro is poised for a successful return to the public market.
Sources
Platinum Equity's Ingram Micro targets up to $5.4 bln valuation in US IPO | Reuters, Reuters.