Why Is QXO Stock Surging Over 8% Pre-Market Today?

• Under the terms of the deal, Apollo and other backers committed to purchasing the convertible preferred stock to help underwrite buyouts through mid-July 2026.
• The agreement also has an option to extend the funding window by up to a year if a deal is signed before the initial deadline expires.
• The preferred shares are structured as perpetual securities that pay holders a 4.75 % annual dividend.

QXO, Inc. (QXO) announced on Monday that a group of investors led by affiliates of Apollo Global Management, Inc. (APO) agreed to pump roughly $1.2 billion into the company. 

The funding comes through a newly created series of perpetual convertible preferred shares and aims to give the building products distributor more firepower as it looks to expand through acquisitions.

Following the update, QXO stock traded over 8% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels. 

Investment Agreement

Under the terms of the deal, Apollo and other backers committed to purchasing the convertible preferred stock to help underwrite one or multiple qualifying buyouts through mid-July 2026.

The agreement also has an option to extend the funding window by up to a year if a deal is signed before the initial deadline expires.

Terms Of The Preferred Shares

The preferred shares are structured as perpetual securities that pay holders a 4.75 % annual dividend and can be swapped for QXO’s common stock at a starting conversion price of $23.25 per share.

The capital infusion is expected to strengthen QXO’s financial position as it pursues strategic acquisitions in the building products distribution market, an $800 billion sector in North America.

According to a Bloomberg report, QXO, founded by billionaire Brad Jacobs in 2023, is designed to bring together companies across the building products distribution space. So far, QXO has made just one major acquisition. In April 2025, the company finalized its $11 billion acquisition of Beacon Roofing Supply Inc.

QXO stock has gained over 22% in the last 12 months. 

Also See: ASML Stock On Retail Radar After Bernstein Flags Strong Chip Demand Outlook

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