(Bloomberg) -- Ingram Micro Holding Corp. shares jumped as much as 17% in its trading debut after the technology company and its backer Platinum Equity raised $409 million in an initial public offering that priced within a marketed range.
Shares of the Irvine, California-based company rose to $25 each at 12:20 p.m. on Thursday in New York, up 14% from the $22 IPO price. The company sold 11.6 million shares in the IPO while Platinum Equity sold 7 million on Wednesday after offering them for $20 to $23.
The trading gives Ingram Micro a market value of nearly $6 billion, based on the shares outstanding in its filings. The company plans to use proceeds to help pay down a portion of its debt, the filings show.
“We were well over-subscribed and we got great investor response about the opportunity that lies in front of us,” Paul Bay, Chief Executive Officer of Ingram Micro, said in an interview. “We’ve already repaid since April of 2022 $1.3 billion and we’ll use the primary proceeds to continue to pay down debt.”
Founded in 1979, Ingram Micro offers technology, hardware and services, and its own digital platform, Ingram Micro Xvantage, according to the filings. Platinum Equity will continue to control almost 90% of Ingram Micro’s shares after the offering, the filings show.
The company expects net income of $73 million to $77 million on net sales of about $12 billion in the 13 weeks ended Sept. 28, versus $87 million in net income on net sales of almost $12 billion in the same period a year earlier, according to its filings.
Platinum Equity agreed to acquire Ingram Micro from debt-laden Chinese conglomerate HNA Group Co. in 2020 for about $7.2 billion. The private equity firm led by billionaire Tom Gores has more than $48 billion in assets under management, according to its website. It has made over 450 acquisitions to date, the website shows.
Following the Platinum Equity acquisition, Ingram Micro sold most of its commerce and lifestyle services businesses to shipping and logistics firm CMA-CGM Group at an enterprise value of $3 billion, according to a statement at the time.
“We have a very diverse portfolio and reach,” said Bay. “We’re going to focus on how we deliver, in a fragmented business-to-business market, a really business-to-consumer experience.”
The offering was led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. The company’s shares are trading on the New York Stock Exchange under the symbol INGM.
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