FREMONT, Calif. & CLEARWATER, Fla. - TD (TSX:TD) SYNNEX Corporation (NYSE: NYSE:SNX), a leading global IT distributor, has upsized its secondary public offering to 10,500,000 shares of common stock, as announced today. The shares are being sold by entities affiliated with Apollo Global Management (NYSE:APO), Inc., with the transaction expected to close around April 2, 2024, pending customary closing conditions.
In a strategic move, TD SYNNEX also plans to repurchase 500,000 shares from the underwriters as part of the offering, utilizing its existing share repurchase program. This Concurrent Share Repurchase will be funded from the company's existing cash reserves. Notably, the company will not receive any proceeds from the shares sold by Apollo Global Management affiliates.
The underwriters, which include J.P. Morgan Securities LLC, Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., and Mizuho Securities USA LLC, have also been granted an option to purchase up to an additional 1,575,000 shares from the selling stockholders within a 30-day period.
This offering follows the effectiveness of shelf registration statements filed with the Securities and Exchange Commission (SEC) on September 2, 2021, and October 10, 2023. Moreover, a preliminary prospectus supplement detailing the offering was submitted to the SEC on March 27, 2024, with the final prospectus supplement to be filed and made available on the SEC's website.
TD SYNNEX is recognized for its comprehensive IT product, service, and solution offerings, serving over 150,000 customers across more than 100 countries. The company's portfolio spans several high-growth technology segments, such as cloud services, cybersecurity, big data and analytics, artificial intelligence (AI), and the Internet of Things (IoT).
The information regarding the offering is based on a press release statement.
InvestingPro Insights
As TD SYNNEX Corporation (NYSE: SNX) navigates its secondary public offering and concurrent share repurchase, the latest metrics and trends from InvestingPro present a broader financial context for investors. With a market capitalization of $10.07 billion and a noteworthy P/E ratio of 16.61, the company demonstrates a stable investment profile, which is further reinforced by a more attractive adjusted P/E ratio of 12.92 for the last twelve months as of Q1 2024.
InvestingPro Tips highlight TD SYNNEX's proactive approach to shareholder value, with management actively buying back shares and a high shareholder yield. The company has also consistently rewarded its investors by raising its dividend for three consecutive years, signifying a reliable income stream for shareholders. This is pertinent information for investors considering the current offering and repurchase plan, as it underscores the company's commitment to returning value to its shareholders.
Additionally, the company's stock has experienced significant returns, with a 10.47% total return over the past week and a 27.64% total return over the past year, reflecting a strong performance trajectory. These returns are critical for investors to consider in light of the ongoing transactions and the company's future growth prospects in the high-growth technology segments it operates in.
For investors seeking a more in-depth analysis, InvestingPro offers further insights, including additional InvestingPro Tips that can help in evaluating the company's financial health and growth potential. Remember, using the coupon code PRONEWS24 can provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 17 additional tips available on InvestingPro, investors can gain a comprehensive understanding of TD SYNNEX's investment profile.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.