Platinum Equity’s Ingram Micro Publicly Files for US IPO, According to Reuters

Ingram Micro announced its intention to go public in the U.S. with an IPO filing made public on Monday, marking its return to the stock market more than two years after being acquired by private equity firm Platinum Equity.

The current climate of anticipated monetary policy easing and pressures for private equity firms to return capital to investors has led to increased interest in taking portfolio companies public. Ingram Micro was acquired in 2021 for $7.2 billion from a division of the Chinese conglomerate HNA Group.

The upcoming offering will involve shares being sold by both the company and some existing stockholders. Established in 1979, Ingram Micro collaborates with technology manufacturers and cloud service providers, promoting their products via its digital platform, Ingram Micro Xvantage. The firm also delivers a range of technology solutions and supply chain services.

Recent reports indicate a 5.5% decline in net revenue for 2023, totaling $48 billion, attributed largely to the divestiture of its commerce and lifecycle services (CLS) business. This unit was sold to CMA CGM Group, a French shipping company, for $3 billion in April 2022.

Ingram Micro’s net income dropped significantly, falling to $352.7 million in 2023 compared to $2.39 billion the previous year, which included a one-time gain of $2.28 billion from the CLS sale. The company had laid the groundwork for its IPO by confidentially filing for it in September 2022.

The proceeds from the IPO are primarily intended to service existing debt. Ingram Micro aims to list its shares on the New York Stock Exchange under the ticker symbol “INGM.” The offering’s underwriting is being managed by numerous Wall Street banks, with Morgan Stanley, Goldman Sachs, and J.P. Morgan Securities leading the charge.