Ingram Micro stock falls on 13.1M share offering by Platinum

Shares of Ingram Micro Holding Corporation (NYSE:INGM) declined 3.8% in post-market trading on Tuesday after Ingram Holdco, LLC, an affiliate of Platinum Equity, LLC, announced the launch of a secondary public offering of 13,125,000 common shares.

The selling stockholder also intends to grant the underwriter a 30-day option to buy up to approximately 1,968,750 additional common shares at the offering price, net of underwriting discounts and commissions.

All net offering proceeds, including gains from any exercise of the underwriter option, will go to the selling stockholder. Ingram Micro is not selling any shares in the offering and will receive no proceeds from the sale.

Ingram Micro plans to authorize a repurchase of 625,000 shares from the underwriter as part of the transaction, at a per-share price equivalent to the price the underwriter pays the selling stockholder. The underwriter will earn no compensation for the buyback.

The buyback falls under Ingram Micro's previously established repurchase program and is expected to be funded using cash on hand. The repurchase is slated to close simultaneously with the offering.

The share repurchase will be contingent on the offering's completion, but the offering is not contingent on the repurchase's completion.

Goldman Sachs & Co. LLC serves as sole underwriter for the offering, which is conducted under an automatic shelf registration statement filed with the U.S. Securities and Exchange Commission.

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