QXO Announces Common Stock Offering
QXO (NYSE: QXO) has announced plans for a $500 million common stock offering, with an additional option for underwriters to purchase up to $75 million of shares at the same price. The company plans to use the proceeds to partially finance the pending acquisition of Beacon Roofing Supply.
Morgan Stanley and Goldman Sachs are serving as underwriters for the offering, which will be conducted through various transaction methods including the NYSE and over-the-counter market. The offering will be made through a prospectus supplement under QXO's effective registration statement on Form S-3ASR.
QXO (NYSE: QXO) ha annunciato un offerta di azioni ordinarie per 500 milioni di dollari, con un'opzione aggiuntiva per i sottoscrittori di acquistare fino a 75 milioni di dollari di azioni allo stesso prezzo. L'azienda prevede di utilizzare i proventi per finanziare parzialmente l'acquisizione in corso di Beacon Roofing Supply.
Morgan Stanley e Goldman Sachs agiranno come sottoscrittori dell'offerta, che sarà condotta attraverso diversi metodi di transazione, inclusi il NYSE e il mercato over-the-counter. L'offerta sarà effettuata tramite un supplemento al prospetto nell'ambito della dichiarazione di registrazione efficace di QXO sul modulo S-3ASR.
QXO (NYSE: QXO) ha anunciado un oferta de acciones ordinarias por 500 millones de dólares, con una opción adicional para que los suscriptores compren hasta 75 millones de dólares en acciones al mismo precio. La compañía planea usar los ingresos para financiar parcialmente la adquisición pendiente de Beacon Roofing Supply.
Morgan Stanley y Goldman Sachs actuarán como suscriptores de la oferta, que se realizará mediante varios métodos de transacción, incluyendo la NYSE y el mercado extrabursátil. La oferta se hará a través de un suplemento de prospecto bajo la declaración de registro efectiva de QXO en el formulario S-3ASR.
QXO (NYSE: QXO)는 5억 달러 규모의 보통주 공모를 발표했으며, 인수인들이 동일한 가격으로 최대 7,500만 달러 상당의 주식을 추가로 매입할 수 있는 옵션도 포함되어 있습니다. 회사는 이 자금을 Beacon Roofing Supply의 인수 자금 일부로 사용할 계획입니다.
Morgan Stanley와 Goldman Sachs가 이번 공모의 인수인으로 참여하며, NYSE 및 장외시장 등 다양한 거래 방식을 통해 진행될 예정입니다. 이번 공모는 QXO의 유효 등록 신고서 Form S-3ASR에 따른 증권신고서 보충서를 통해 이루어집니다.
QXO (NYSE : QXO) a annoncé un offre d’actions ordinaires de 500 millions de dollars, avec une option supplémentaire permettant aux souscripteurs d’acheter jusqu’à 75 millions de dollars d’actions au même prix. La société prévoit d’utiliser les fonds pour financer partiellement l’acquisition en cours de Beacon Roofing Supply.
Morgan Stanley et Goldman Sachs agissent en tant que souscripteurs de l’offre, qui sera réalisée par différents moyens de transaction, y compris la NYSE et le marché de gré à gré. L’offre sera effectuée via un supplément au prospectus dans le cadre de la déclaration d’enregistrement en vigueur de QXO sur le formulaire S-3ASR.
QXO (NYSE: QXO) hat Pläne für ein 500 Millionen US-Dollar Angebot von Stammaktien angekündigt, mit einer zusätzlichen Option für die Underwriter, bis zu 75 Millionen US-Dollar an Aktien zum gleichen Preis zu erwerben. Das Unternehmen plant, die Erlöse teilweise zur Finanzierung der bevorstehenden Übernahme von Beacon Roofing Supply zu verwenden.
Morgan Stanley und Goldman Sachs fungieren als Underwriter für das Angebot, das über verschiedene Transaktionsmethoden, einschließlich der NYSE und des außerbörslichen Handels, durchgeführt wird. Das Angebot erfolgt durch einen Prospektergänzungsbericht unter QXOs wirksamer Registrierungserklärung auf Formular S-3ASR.
- Secured major underwriters Morgan Stanley and Goldman Sachs for the offering
- Strategic acquisition of Beacon Roofing Supply indicates business expansion
- Significant shareholder dilution expected from $500M stock offering
- Additional potential dilution from $75M underwriter option
Insights
QXO's $500M stock offering will dilute existing shareholders by ~9% while funding its Beacon acquisition strategy, signaling major expansion plans.
QXO has announced plans to raise
The primary purpose of this offering is to finance a portion of QXO's pending acquisition of Beacon Roofing Supply. Notably, the offering is not contingent on completing the acquisition, giving QXO flexibility in capital deployment should the deal fall through. This non-contingent structure suggests management may have alternative uses for the capital if needed.
From a financial perspective, this move will increase QXO's outstanding share count substantially. With the current share price at
The engagement of Morgan Stanley and Goldman Sachs as underwriters signals institutional confidence in the offering. These top-tier investment banks typically don't associate with offerings they believe will struggle to attract investor interest.
While stock offerings are often viewed negatively due to dilution effects, strategic acquisitions like Beacon Roofing Supply could transform QXO's growth trajectory if successfully integrated. The market will ultimately evaluate this capital raise against management's track record of capital allocation and whether the Beacon acquisition represents a compelling strategic fit with potential for long-term value creation.
QXO's equity-based financing for Beacon acquisition signals confidence in strategic fit but will dilute shareholders by ~9% with uncertain ROI timeline.
QXO's decision to finance its Beacon Roofing Supply acquisition partially through equity rather than solely with debt reveals important strategic considerations. In the current higher interest rate environment, QXO appears to be making a calculated choice to maintain balance sheet flexibility by not exclusively taking on additional debt obligations.
This
The non-contingent nature of the offering is particularly noteworthy. By decoupling the capital raise from the acquisition's completion, management creates optionality. This could indicate they're anticipating potential regulatory hurdles or competitive bids for Beacon, while still wanting to secure funding immediately.
For current QXO shareholders, this offering triggers an ownership dilemma. They face
QXO's choice of equity financing might also signal management's perspective on current share valuation. Companies typically prefer issuing equity when they believe their shares are fairly valued or potentially overvalued, raising questions about internal valuation perspectives.
This transaction ultimately represents a pivotal strategic shift that will test management's acquisition integration capabilities and vision for creating cross-company synergies in the building materials sector.
QXO intends to grant the underwriters of the Offering an option to purchase up to an additional
QXO intends to use the net proceeds from the Offering to finance a portion of the consideration for the pending acquisition of Beacon Roofing Supply, Inc. (“Beacon”); however, the Offering is not contingent on the consummation of the acquisition.
Morgan Stanley Co. LLC and Goldman Sachs & Co. LLC are acting as the underwriters for the Offering and propose to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at prevailing market prices, at prices related to prevailing market prices or at negotiated prices.
The Offering will be made by means of a prospectus supplement under QXO’s effective registration statement on Form S-3ASR, as filed with the Securities and Exchange Commission (the “SEC”).
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful. The Offering may be made only by means of a prospectus supplement relating to such Offering and the accompanying prospectus. Copies of the preliminary prospectus supplement for the Offering and the accompanying prospectus can be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
About QXO
QXO plans to become the leader in the
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets or goals and the use of proceeds of the Offering, are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described herein include, among others: (i) the risk that the proposed acquisition may not be completed on the anticipated terms in a timely manner or at all; (ii) the failure to satisfy any of the conditions to the consummation of the proposed acquisition, including uncertainties as to how many of stockholders of Beacon will tender their shares in the tender offer; (iii) the effect of the pendency of the proposed acquisition on each of QXO’s and Beacon’s business relationships with employees, customers or suppliers, operating results and business generally; (iv) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement, including circumstances that require Beacon to pay a termination fee; (v) the possibility that the proposed acquisition may be more expensive to complete than anticipated, including as a result of unexpected factors or events, significant transaction costs or unknown liabilities; (vi) potential litigation and/or regulatory action relating to the proposed acquisition; (vii) the risk that the anticipated benefits of the proposed acquisition may not be fully realized or may take longer to realize than expected; (viii) the impact of legislative, regulatory, economic, competitive and technological changes; (ix) QXO’s ability to finance the proposed transaction, including the ability to obtain the necessary financing arrangements set forth in the commitment letters received in connection with the proposed acquisition; (x) unknown liabilities and uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions; and (xi) the risks and uncertainties set forth in QXO’s and Beacon’s SEC filings, including each company’s Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q.
Forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not undertake any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.
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Media
Joe Checkler
joe.checkler@qxo.com
203-609-9650
Investors
Mark Manduca
mark.manduca@qxo.com
203-321-3889
Source: QXO, Inc
FAQ
How much is QXO's new stock offering worth and what is its purpose?
Who are the underwriters for QXO's stock offering?
Will QXO's stock offering affect existing shareholders?
Is QXO's stock offering contingent on the Beacon Roofing Supply acquisition?
