QXO drops on $500 mln equity raise for Beacon Roofing deal

Beacon Roofing Supply

17/04/2025 11:27

**  Shares of building-products distributor QXO QXO.N down 6.5% premarket at $13.34 after acquisition-related follow-on priced

** Greenwich, Connecticut-based QXO late Weds sold ~37.7 mln shares at $13.25 for $500 mln gross proceeds with

** Offering priced at 7.1% discount to last sale

** QXO plans to use proceeds to help finance pending buy of Beacon Roofing Supply BECN.O, but said the offering not contingent on acquisition's consummation

** Last month, Herndon, Virginia-based BECN agreed to the $11 bln buyout deal from billionaire Brad Jacobs' firm

** QXO has ~409.4 mln shares outstanding for ~$5.8 bln market cap

** Morgan Stanley and Goldman Sachs are jt bookrunners for the offering

** Through Weds close, QXO's shares off 10% YTD

** BECN's shares on Weds ended at $123.09, up 21% in 2025

** Earlier this week, QXO extended its $124.35/sh all-cash offer for BECN to Apr 21

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))