Carlyle-backed StandardAero prices IPO above range to raise $1.44 billion (updated)

StandardAero

02/10/2024 01:30

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      StandardAero prices IPO above range at $24/shr
    

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      Company and investors sell 60 million shares to raise
$1.44 bln
    

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      IPO values StandardAero at about $8 billion 
    

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      Shares to start trading on NYSE on Wednesday
    

  
 (Changes sourcing to the company)
    By Echo Wang
       NEW YORK, Oct 1 (Reuters) - StandardAero  SARO.N , a
U.S. aircraft maintenance services provider, priced its U.S.
initial public offering above its indicated range to raise $1.44
billion, the company said on Tuesday.
    Scottsdale, Arizona-based StandardAero, which is backed by
buyout firm Carlyle  CG.O , priced its offering at $24 apiece,
above its range of $20 to $23.
    Earlier in the day, Reuters exclusively reported about the
$24 price offering, citing people familiar with the matter. 
    StandardAero and some of its existing shareholders sold 60
million shares, making it the biggest U.S. IPO since
cold-storage warehouse operator Lineage  LINE.O  raised $4.45
billion in June.
    The IPO values StandardAero at roughly $8 billion, based on
about 334.5 million outstanding shares.
    Carlyle did not respond to a Reuters request for comment.
    Founded in 1911, StandardAero provides maintenance, repair
and overhaul services to clients in sectors such as commercial
and military aviation, as well as energy. The company partners
with major aircraft engine makers, including Rolls-Royce  RR.L 
and GE Aerospace  GE.N -backed CFM International.
    StandardAero reported a net profit of $8.6 million on
revenue of $2.6 billion in the first half of 2024, compared with
a loss of $12.6 million on revenue of $2.31 billion a year
earlier, according to its most recent regulatory filing. 
    Carlyle acquired StandardAero from buyout firm Veritas
Capital for about $5 billion in 2019. 
    The IPO comes as U.S. equity capital markets are starting to
bounce back slowly, after a lackluster summer that was hampered
by market volatility that forced many companies to postpone
their offerings. 
    Reuters was first to report in April that Carlyle was
weighing options for StandardAero, including a possible IPO.
    StandardAero's shares are expected to start trading on the
New York Stock Exchange on Wednesday under the ticker 'SARO'.
    JPMorgan and Morgan Stanley are the lead underwriters for
the offering. Other bookrunners included BofA, UBS, Jefferies
and RBC Capital Markets.

 (Reporting by Echo Wang in New York , Additional reporting by
Disha Mishra in Bengaluru; Editing by Anirban Sen, David Evans
and Jamie Freed)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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