StandardAero sets terms for planned IPO at valuation of up to $7.5 billion

By Ciara Linnane

Provider of aerospace engine aftermarket services will be one of the bigger IPOs of 2024

StandardAero Inc., a provider of aerospace engine aftermarket services, set terms for its initial public offering on Monday, with plans to offer 46.5 million shares priced at $20 to $23 a pop.

The company would raise $1.1 billion at the top of that range. With some 327.7 million shares expected to be outstanding once the deal closes, the company would have a valuation of $7.5 billion, making it one of the bigger deals of the year.

The Scottsdale, Ariz.-based company has applied to list on the New York Stock Exchange under the ticker "SARO (SARO)."

JP Morgan and Morgan Stanley are top underwriters in a team of 17 banks working on the deal.

The company, which was founded in 1911, serves commercial-aerospace, military and helicopter, and business-aviation clients with about 7,300 employees working at more than 50 facilities across the globe.

It serves all the major original equipment manufacturers, or OEMs, including GE Aerospace (GE), CFM International, Pratt & Whitney, Rolls-Royce (UK:RR), Honeywell (HON) and Safran (FR:SAF).

StandardAero had net income of $8.6 million in the first six months of the year, after a loss of $12.6 million in the year-earlier period. Revenue rose to $2.58 billion from $2.31 billion.

StandardAero changed its name from Dynasty Parent Co. Inc. on Sept. 5.

In its IPO filing documents, the company describes itself as the world's biggest independent pure-play provider of aftermarket services for fixed- and rotary-wing aircraft.

"We provide a comprehensive suite of critical, value-added aftermarket solutions, including scheduled and unscheduled engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions," the documents said.

The company's history of net losses is mostly due to the cost of servicing debt, which totaled $3.276 billion as of June 30. The company also completed 11 acquisitions in the past seven years, adding engine platforms, new capabilities and intellectual property, while also expanding into new geographies it views as having the best growth potential.

The deal comes as the Renaissance IPO ETF (IPO) has gained 13.8% in the year to date, while the S&P 500 has gained 19.6%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-23-24 0747ET

Copyright (c) 2024 Dow Jones & Company, Inc.