BUZZ-QXO falls after announcing pricing of common stock offering
Shares of QXO fell 5% to $22.33 in premarket trading after announcing a $2 billion common stock offering at $22.25 per share, a nearly 5% discount from the last close of $23.50. The offering includes an option for underwriters to purchase an additional $300 million in shares. Proceeds will be used for general corporate purposes, including funding future acquisitions. QXO recently made a $5 billion offer to acquire GMS and completed an $11 billion deal for Beacon Roofing Supply, aiming for $50 billion in annual revenue over the next decade.
Shares of building products distributor QXO (QXO.N) down 5% at $22.33 in premarket trading
QXO announces $2 bln common stock offering at $22.25 per share, an almost 5% discount from stock’s last close of $23.50
Underwriters have option to buy additional $300 mln shares; Goldman Sachs, Morgan Stanley and Wells Fargo Securities to act as underwriters
Co intends to use net proceeds from the offering for general corporate purposes, including funding future acquisitions Co made an offer last week to acquire GMS (GMS.N) for about $5 bln, threatening a hostile takeover if the bid wasn’t accepted
They also closed a $11 bln deal to buy Beacon Roofing Supply (BECN.O) this year with CEO Brad Jacobs targeting $50 bln in annual revenue over the next decade through acquisitions and organic growth
As of last close, stock is up 47.8% YTD
