Ingram Micro drops on Platinum Equity's $285 mln share sale

Goldman Sachs group

Yesterday 12:55

** IT products distributor Ingram Micro's INGM.N shares down 4% at $25.90 before the bell on Tues after secondary offering priced
** Irvine, California-based INGM late Mon announced 11 mln shares sold by affiliate of major holder Platinum Equity at $25.90, equating to ~$284.9 mln gross proceeds
** Further, INGM to buy back 1 mln shares from sole underwriter, Goldman Sachs, as part of offering
** Sale reduces investment firm Platinum's stake to ~151.4 mln shares; post offering, and including the stock repurchase, INGM has ~229.1 mln shares outstanding, per the prospectus
** Beverly Hills-based Platinum, founded by billionaire businessman Tom Gores, carved its stake in Sept secondary offering priced at $27.25
** INGM late Thurs posted Q3 top- and bottom-line beat, per LSEG, saying growth was strongest in Advanced Solutions, including GPU and AI infrastructure, and Cloud-based Solutions business segments
** INGM's stock closed down 5% at $26.98 on Mon, trimming YTD gain to 26%
** 7 of 15 analysts rate the stock "strong buy" or "buy", 8 "hold"; median PT $32.50

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))