QXO Inc. (Nasdaq: QXO), a company with ties to Jared Kushner, former President Donald Trump’s son-in-law, experienced a staggering 80% drop in stock value during trading on Tuesday. The company’s shares plummeted from Monday’s closing price of $60.50 to a mere $12.05.
The precipitous decline came after QXO filed registration statements for two previously announced private placements with the U.S. Securities and Exchange Commission. This move unlocked millions of shares, leading to increased selling pressure and a subsequent market selloff.
QXO, which had boasted an implied valuation exceeding $90 billion just last week, saw its paper value plummet by approximately $36 billion. The company’s current valuation stands at around $8.6 billion on a fully diluted basis, a stark contrast to its recent peak.
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The company, initially funded with a $1 billion investment led by Brad Jacobs into Nasdaq-listed SilverSun Technologies Inc., had been raising billions through private placements. These fundraising efforts continued even as QXO’s stock price soared to an impressive $290 per share in June.
Earlier this month, QXO announced a $620 million private placement, which included a $150 million investment from Kushner’s Affinity Partners. This news, coupled with Kushner’s appointment to QXO’s board of directors, had initially triggered a 112% surge in the company’s stock price.
QXO has said that it plans to use the raised funds, totaling $5 billion in cash with no debt, to make acquisitions in the building products distribution industry. This strategy effectively positions the company as a blank-check entity, although it has decided to retain its SilverSun Technologies business, contrary to earlier plans for a spin-off.
Information for this story was found via Bloomberg, Benzinga, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
