Ingram Micro, the electronics distributor backed by private equity, has finally made its U.S. IPO filing public. Find out how this move could impact the market and your investments.
Platinum Equity acquired Ingram in a $7.2 billion deal in 2021, and now the company is looking to return to the stock markets. With expectations of monetary policy easing and pressure to return capital to investors, PE firms are increasingly listing their portfolio companies.
Ingram, founded in 1979, partners with technology manufacturers and cloud providers through its digital platform, Ingram Micro Xvantage. The company also offers businesses a range of technology products and supply chain services.
However, Ingram reported a 5.5% drop in net revenue to $48 billion in 2023 due to the sale of its commerce and lifecycle services (CLS) business to French shipping company CMA CGM Group in a $3 billion deal.
The company's net income also saw a significant decrease from $2.39 billion in 2022 to $352.7 million in 2023, following the CLS sale. The IPO proceeds will primarily be used to pay down debt as Ingram plans to list on the New York Stock Exchange under the symbol "INGM."
The offering is underwritten by top Wall Street banks, including Morgan Stanley, Goldman Sachs, and J.P. Morgan Securities.
Analysis:
Ingram Micro's decision to go public could signal a new era for the company and its investors. While the recent financial results may raise some concerns, the IPO proceeds could help strengthen the company's financial position and drive future growth.
Investors should closely monitor the developments surrounding Ingram's IPO and consider the potential impact on their portfolios. As the company navigates the challenges of the current market environment, understanding the risks and opportunities associated with this IPO is crucial for making informed investment decisions.