Ingram Micro Holding Corp. (INGM) experienced a sharp pre-market plunge of 16.50% on Friday, following significant news regarding its capital structure.

The dramatic decline was triggered by the company's announcement that its principal stockholder, Platinum Equity, has priced a secondary offering of approximately 9 million shares at $22.25 per share. Platinum Equity, which owns approximately 90% of Ingram Micro's outstanding shares, is selling $200 million worth of common stock in this offering. Market participants often interpret large secondary offerings by major insiders as increasing the supply of shares available in the market, which can create near-term downward pressure on the stock price.

Concurrently, the company announced its intention to repurchase at least $50 million of common stock from the selling stockholder as part of its existing share repurchase program. The company will not receive any proceeds from the secondary offering.