Ingram Micro Holding Corp. (INGM) experienced a sharp intraday decline of 17.58% on Friday.

The stock's plunge 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. The offering price represents a significant discount to the stock's previous closing price. Platinum Equity, which owns approximately 90% of Ingram Micro's outstanding shares, is selling $200 million worth of common stock in this transaction.

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 separately repurchase $75 million worth of shares from the selling stockholder. The company will not receive any proceeds from the secondary offering.