Synnex IPO may raise US$92 million

Synnex Information Technologies Inc, which distributes the products of Hewlett-Packard Co and Intel Corp, said in a regulatory filing it plans to raise as much as US$92 million in an initial public offering.

Synnex, led by chief executive officer Robert Huang, is 98 percent-owned by Mitac International Corp (神達電腦), a Taiwan-based company that makes personal computers and parts for Hewlett-Packard and Dell Inc. Mitac intends to sell shares in the offering and will continue to control Synnex after the sale, the filing said.

Taiwan's Synnex Technology International Corp (聯強國際), the nation's biggest electronics distributor, is also under the Mitac umbrella.

The company based in Fremont, California hired Bear Stearns & Co along with Bank of America Corp and Raymond James Financial Inc to underwrite the sale, according to a Securities and Exchange Commission filing. It will use the proceeds to repay and reduce debt.

The NASDAQ Computer Index has surged 41 percent this year as investors have become optimistic technology stocks will rebound.

Technology companies, such as Intel, the world's biggest chipmaker, have posted stronger results recently and the US Commerce Department announced last week that second-quarter purchases of equipment and software by businesses rose at an 8.2 percent annual rate, the fastest pace in three years.