QXO increases convertible preferred equity placement to $3 billion

QXO, Inc. (NYSE: QXO) announced an increase of $1.8 billion to its previously disclosed $1.2 billion financing, bringing the total investment to $3 billion. The expanded placement is led by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO), with participation from Temasek and other investors.

The investment will be made through convertible perpetual preferred stock designated as Series C Preferred Stock. Under the agreement, investors have committed to purchase the securities to fund qualifying acquisitions through July 15, 2026. The commitment period can be extended for up to 12 additional months if a definitive acquisition agreement is executed before the initial period expires.

The Series C Preferred Stock will be issued at or around the closing of qualifying acquisitions. QXO stated the investment strengthens its financial flexibility to pursue strategic acquisition opportunities.

The securities are being offered in a private placement not involving a public offering and have not been registered under the Securities Act of 1933. QXO has agreed to use commercially reasonable efforts to file a prospectus supplement with the Securities and Exchange Commission to register the resale of the Series C Preferred Stock and underlying common stock issuable upon conversion.

QXO describes itself as the largest publicly traded distributor of roofing, waterproofing, and complementary building products in North America. The company has stated plans to target $50 billion in annual revenues within the next decade through acquisitions and organic growth in the building products distribution industry.

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