Shares of Ingram Micro Holding Corporation (NYSE: INGM) moved sharply lower after the company’s principal stockholder, Ingram Holdco, LLC (an affiliate of Platinum Equity), launched and then priced a sizable secondary offering. The deal was priced at $26.00 per share for 12,740,384 shares, a setup that often pressures the stock in the short term as the market absorbs incremental supply and arbitrage desks position around the offering price.

The secondary is being sold by the stockholder, meaning the company is not issuing new shares and will not receive proceeds from the sale. However, the transaction increases the freely trading float and can act like a temporary cap on the share price while the deal settles. The underwriters also have a 30-day option to purchase up to an additional 1,730,769 shares, which can extend the supply overhang depending on demand.

Ingram Micro also disclosed that it expects to authorize a repurchase of at least $30 million of common stock from the underwriters as part of the offering, funded with cash on hand, and that the repurchase is expected to occur concurrently with the offering close. While buybacks can provide support, today’s tape suggests the market is prioritizing the mechanical impact of the secondary price and share count hitting the market over the near-term benefit of the repurchase.