Ingram Micro Stock Plunges 13% Premarket on Secondary Offering Pricing
INGM sits 61% above its 52-week low of $14.25.
Summary
Ingram Micro Holding shares are down 13% in premarket trading after its principal stockholder, Ingram Holdco, priced a secondary offering of 8.99 million shares at $22.25 apiece. This follows the announcement of the secondary offering on March 5th, which detailed the intent to sell $200 million in common stock. The market's negative reaction to the specific pricing and the increased float from the selling shareholder is driving the significant premarket decline. The company also updated its concurrent share repurchase agreement with the seller to $75 million, up from the $50 million previously indicated, which aims to partially offset the selling pressure.
At the time of this announcement, INGM was trading at $22.98 on NYSE in the Technology sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $14.25 to $26.38. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.