QXO announced that global asset management firm Apollo Global Management is leading a $1.2 billion investment in the company through the issuance of convertible preferred shares. The transaction marks Apollo’s largest commitment to QXO to date and comes as part of a consortium that includes other institutional investors. Shareholders reacted positively, driving QXO’s share price up by more than 19% in morning trading.

The newly issued preferred shares carry a 4.75% annual dividend and feature an initial conversion price of $23.25 per share, representing an 18% premium over QXO’s closing price on the prior trading day. These shares will automatically convert into common equity under certain conditions, providing Apollo and its partners with potential upside if QXO’s market value continues to rise.

As a condition of the investment, QXO must deploy the $1.2 billion to fund one or more qualifying acquisitions by July 15, 2026. This requirement aligns with founder Brad Jacobs’s strategy to build QXO into the largest building products distributor in North America. The deadline ensures that the capital infusion directly supports growth through strategic purchases rather than general corporate purposes.

QXO has set an ambitious target of $50 billion in annual revenues within the next decade, leveraging a roll-up approach in the $800 billion building products distribution market. The company completed an $11 billion acquisition of Beacon Roofing Supply last April, its largest to date. QXO currently reports a gross margin of 16.8% and a market capitalization of approximately $13 billion, with daily trading volumes averaging 7.2 million shares.