StandardAero's IPO Surpasses Expectations to Raise $1.44 Billion

StandardAero, the U.S.-based aircraft maintenance services provider, successfully priced its initial public offering (IPO) above its expected range, raising $1.44 billion. Backed by private equity firm Carlyle, the IPO values the company at approximately $8 billion. Trading starts Wednesday on the New York Stock Exchange under the ticker 'SARO'.

StandardAero, a prominent U.S. aircraft maintenance services provider, has exceeded expectations by pricing its initial public offering (IPO) above its indicated range, raising a substantial $1.44 billion, the company announced on Tuesday.

Earlier, Reuters had reported the $24-per-share IPO price, citing sources familiar with the development. This marks the largest U.S. IPO since June, surpassing that of cold-storage warehouse operator Lineage. The IPO values StandardAero at an estimated $8 billion, based on 334.5 million outstanding shares. Despite multiple requests for comment, private equity firm Carlyle remained silent.

Established in 1911, StandardAero specializes in maintenance, repair, and overhaul services for both commercial and military aviation sectors. The company collaborates with major aviation engine manufacturers like Rolls-Royce and CFM International. According to recent regulatory filings, StandardAero posted a net profit of $8.6 million on revenues totaling $2.6 billion for the first half of 2024, a significant turnaround from a loss of $12.6 million the previous year.

JPMorgan and Morgan Stanley are the lead underwriters for the offering, joined by BofA, UBS, Jefferies, and RBC Capital Markets. StandardAero's shares will commence trading on the New York Stock Exchange on Wednesday under the ticker 'SARO'. This IPO underscores a cautious recovery in the U.S. equity capital markets, which have been plagued by volatility, forcing many companies to delay their public offerings.

(With inputs from agencies.)