The world's largest IT distributor, Ingram Micro Holding Corp., and its investor Platinum Equity plan to raise up to $427.8 million through an initial public offering (IPO).

The technology company, headquartered in Irvine, California, said in a filing on Tuesday that it would sell 18.6 million shares at a price of $20 to $23 per share. If calculated at the upper limit of the price range, the company's market value would reach $5.4 billion.

The planned financing size is far less than the $1 billion target mentioned in previous foreign media reports. In addition, the valuation is also much lower than the expectation of up to $10 billion mentioned in foreign media reports in May this year.

According to the document, Ingram Micro plans to sell 11.6 million shares, while Platinum Equity will sell 7 million shares. The company plans to use the funds raised this time to repay part of its debt.

Founded in 1979, Ingram Micro provides technology, hardware, and services, and has its own digital platform, Ingram Micro Xvantage. Even after this public offering, Platinum Equity will continue to maintain control over Ingram Micro.

According to the document, for the 26 weeks ending June 29, Ingram Micro's net income was $104 million, with net sales of $22.9 billion, while the net income was $129 million and net sales were $23.1 billion in the same period last year.

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Platinum Equity acquired Ingram Micro from HNA Group for about $7.2 billion in 2020. The private equity firm, led by billionaire Tom Gores, manages over $48 billion in assets according to its website and has completed more than 450 acquisition deals to date.

After being acquired by Platinum Equity, Ingram Micro sold most of its business and lifestyle service business to shipping and logistics company CMA-CGM Group for an enterprise value of $3 billion.

This IPO is led by Morgan Stanley, Goldman Sachs Group, and JPMorgan Chase. The company plans to list on the New York Stock Exchange with the stock code INGM.