QXO Inc. said it has increased its recently announced equity financing to $3 billion, adding $1.8 billion in new commitments led by Temasek and Apollo Global Management as the acquisitive company gears up for another wave of large deals.

The expanded financing follows last week’s announcement that Apollo and other institutional investors agreed to invest $1.2 billion in QXO through a new series of convertible perpetual preferred stock. The additional $1.8 billion brings the total placement to $3 billion and significantly bolsters QXO’s balance sheet for future acquisitions, the company said.

The new round was oversubscribed and drew interest from a broad group of institutional investors, according to people familiar with the matter. Participants include mutual funds, sovereign wealth funds, large family offices, pension plans and insurance companies, including Temasek — the sovereign wealth fund of the Singapore government — Apollo, PGIM, Morgan Stanley Investment Management, Iconiq, AllianceBernstein, Liberty Mutual, ClearBridge Investments, and two large Canadian pension funds, British Columbia Investment Management Corp. and Alberta Investment Management Corp., the sources said. Apollo also participated in the new $1.8 billion tranche.

The investment is being made through QXO’s Series C convertible perpetual preferred stock and is structured to fund one or more qualifying acquisitions through July 15, 2026. The commitment period can be extended by up to 12 months if QXO enters into a definitive acquisition agreement before that date.

The expanded financing sets the stage for what sources described as an active year of dealmaking in 2026. QXO is in advanced stages of discussions on another significant acquisition and is currently evaluating roughly 20 potential targets, with seven in deep, late-stage talks at what sources characterized as attractive valuations.

Those late-stage targets include a mix of mid-sized companies with $1 billion to $5 billion in annual revenue and larger, potentially transformational acquisitions with more than $5 billion in revenue. Several of the targets are private, family-owned businesses in both the United States and Europe, the sources said.

The financing is predicated on QXO completing at least one acquisition by mid-July 2026, and the likelihood of announcing a transaction in the coming weeks or months is high, according to people familiar with the process.

Sources said the current macroeconomic environment is creating a growing pool of attractive M&A opportunities, particularly for well-capitalized buyers. Slower new construction activity, combined with higher labor and insurance costs, has pressured margins across the sector, prompting some owners to explore strategic alternatives.

QXO’s acquisition strategy is focused on materially increasing EBITDA within three to five years of each deal through operational integration, technology upgrades and disciplined cost management.

That playbook mirrors QXO’s approach to its Beacon acquisition, which sources said is performing well operationally. Beacon is viewed internally as a stable platform in an attractive vertical, with a strong repair-and-remodel component tied to the aging U.S. housing and commercial building stock. QXO has continued to take market share and believes it is positioned to absorb a second, and potentially multiple additional acquisitions, the sources said.