Aerospace parts maker Loar soars >70% in stellar debut

Loar Holdings

25/04/2024 17:18

(Updates stock activity)
    ** Aerospace parts supplier Loar's  LOAR.N  shares soar >70%
in debut on Thurs after IPO prices above range
    ** LOAR opens at $45 vs $28 IPO price. Stock rises as much
73% to $48.43 early on
    ** Loar late Weds announced 11 mln shares for $308 mln raise
to repay borrowings and for general purposes, working capital
    ** IPO was marketed in range of $24-$26
    ** Loar, which specializes in design, manufacture and sale
of niche components, had acquired a slew of companies including
AGC, CAV and Desser Aerospace to tap into newer geographies
    ** According to the SEC filing, its top five customers
comprised 34% of 2023 net sales of ~$317.5 mln, which grew 33%
from 2022
    ** The top six aircraft platforms represented less than 19%
of total 2023 sales, with Airbus  AIR.PA  320 family and Boeing
 BA.N  737 family its top 2 platforms, according to the filing
    ** Jefferies and Morgan Stanley lead bookrunners on the IPO

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))