What’s with QXO’s share price?
Shares of QXO, the emerging building-products-industry start-up founded by Brad Jacobs, were at $12.05 at the close of business Tuesday.
That stock price was down a long way from $60.50 on close of business July 29—and down even longer from a high of $123.96 on July 24
What’s going on? Essentially, a sudden surge of supply of shares in the closely regulated financial market.
A QXO spokesman declined to comment. But a July 29 filing with the Securities and Exchange Commission shows that a registration statement for $4.1 billion worth of stock raised through two private placements suddenly became freely tradable, pushing down the share price.
Another way to look at the $12.05 closing price on Tuesday is how it compares to the price of the private placement, which was $9.14 per share. Tuesday's close was up 32 percent from that perspective.
The company continues to wield a war chest of $5 billion, with a well-publicized intention to invest in the highly fragmented, $800 billion building products distribution industry.
The market capitalization for QXO at Tuesday’s closing price is just under $9 billion.
In other QXO news, the company recently named Donald Trump’s son-in-law Jared Kushner — the CEO of Affinity Partners, a global firm with over $3 billion in investments—as an investor and a board member. During the years 2017 to 2021, Kushner served as Senior Advisor to the president.
Kushner becomes the seventh board member of the company.
