StandardAero Plans to Exceed IPO Expectations with High Valuation

StandardAero, a U.S. aircraft maintenance services provider, plans to price its initial public offering (IPO) above the expected range, potentially valuing the company at $8 billion. Backed by Carlyle, the IPO could raise $1.44 billion by selling 60 million shares. The shares will start trading on NYSE under ticker 'SARO'.

StandardAero, a prominent U.S. aircraft maintenance services provider, is on track to price its initial public offering (IPO) above its previously indicated range, potentially making it one of the year's largest stock market debuts, according to sources familiar with the situation.

Backed by buyout firm Carlyle, the Arizona-based company is nearing the necessary investor support to set the share price at $24 or higher, surpassing the anticipated range of $20 to $23. The IPO aims to raise at least $1.44 billion by selling 60 million shares, valuing StandardAero at approximately $8 billion, based on 334.5 million outstanding shares.

Though the company and Carlyle have not commented on these developments, StandardAero, which partners with major aircraft engine makers like Rolls-Royce and CFM International, has made significant financial strides, reporting net income of $8.6 million on $2.6 billion revenue for the first half of 2024. Shares will be listed on the NYSE under the ticker 'SARO', with JPMorgan and Morgan Stanley as lead underwriters.

(With inputs from agencies.)