StandardAero's IPO to Price Above Indicated Range: Biggest Stock Market Debut of the Year
StandardAero, a leading U.S. aircraft maintenance services provider, is set to price its U.S. initial public offering above its indicated range, making it one of the biggest stock market debuts of the year. Backed by buyout firm Carlyle, the Scottsdale, Arizona-based company is close to securing enough investor support to price its share sale at $24 apiece or more, exceeding its range of $20 to $23.
The IPO is expected to raise at least $1.44 billion, with the company and some existing shareholders selling 60 million shares. This would value StandardAero at roughly $8 billion, based on about 334.5 million outstanding shares. Founded in 1911, StandardAero provides maintenance, repair, and overhaul services to clients in sectors such as commercial and military aviation, as well as energy.
In the first half of 2024, StandardAero reported a net profit of $8.6 million on revenue of $2.6 billion, a significant improvement from a loss of $12.6 million on revenue of $2.31 billion a year earlier. Carlyle acquired StandardAero for approximately $5 billion in 2019 from buyout firm Veritas Capital.
The IPO is a positive sign for U.S. equity capital markets, which are slowly recovering after a lackluster summer marked by market volatility that led many companies to postpone their offerings. StandardAero's shares are expected to begin trading on the New York Stock Exchange on Wednesday under the ticker 'SARO', with JPMorgan and Morgan Stanley serving as lead underwriters for the offering.
In conclusion, StandardAero's successful IPO highlights the company's growth potential and investor confidence in the aviation and energy sectors. This significant milestone not only demonstrates strong market demand but also provides an opportunity for investors to participate in the company's future success. As the company continues to expand its services and partnerships, it is poised for further growth and value creation in the coming years.
