QXO raises additional capital
QXO, the startup company with the ambition to become a tech-forward $50 billion player in the $800 billion building-products-distribution industry, says it has raised $3.5 billion in a private placement.
QXO revealed details in a statement. The company is selling an aggregate of 340,932,212 shares of its common stock at a price of $9.14 per share, and an aggregate of 42.0 million pre-funded warrants at a price of $9.13999 per warrant. QXO has obtained written consent from its shareholders approving the Private Placement, which is expected to close early in the third quarter of 2024.
What that means is that the company has taken another step from the hypothetical to the actual. And it’s taking it with a big bankroll and substantial investors.
QXO declined to comment beyond the release but a person familiar with the investment said investors include Orbis Investment Management, T. Rowe Price, Morgan Stanley Investment Management, Liberty Mutual and Sequoia Heritage.
Based on Bloomberg market data, the equity offering is the largest ever in the building products industry, and also the largest ever made into an industrial company.
Combined with a previous $1 billion investment, QXO has a chest of some $4.5 billion to reach into the market for acquisitions.
A research note from analysts at Truist observed: “This level of dry powder opens up the company to a wide range of both public and privately owned building products distribution companies.”
QXO is founded by billionaire investor Brad Jacobs, who in December of 2023, announced the formation of a company to enter the building-products-distribution arena.
