Platinum Equity’s Ingram Micro to raise about $409 million in US IPO

(Reuters) -Ingram Micro priced its U.S. initial public offering at $22 per share, within its targeted range of $20 and $23 on Wednesday, to raise $409.2 million, the technology distributor said.

Ingram Micro and its private equity owner, Platinum Equity, sold 18.6 million shares at $22 each. The IPO valued the Irvine, California-based company at around $5.18 billion.

The offering was underwritten by over a dozen Wall Street banks, led by Morgan Stanley, Goldman Sachs and J.P. Morgan Securities.

Ingram’s shares are expected to start trading on the New York Stock Exchange on Oct. 24 under the ticker symbol “INGM.”

Platinum Equity will remain Ingram’s controlling shareholder post-IPO. Ingram will mainly use the proceeds to repay debt.

The market for PE-backed IPOs is heating up, buoyed by the U.S. Federal Reserve finally kicking off its long-anticipated easing cycle.

Earlier this month, Carlyle-backed aircraft maintenance services provider StandardAero and Partners Group-backed daycare and childhood education provider KinderCare Learning also went public.

Founded in 1979 as a small computer products distributor named Micro D, Ingram is now one of the world’s largest technology distributors.

Fitch analysts, who track Ingram’s outstanding debt, believe the company is well positioned to adapt to the changing technology environment, partially due to its advanced solutions and cloud businesses.

Ingram’s advanced solutions business focuses on key technologies such as cyber security and data centers that are driving strong growth in technology spend.