StandardAero's IPO raises $1.44 billion and prices above its estimate range

By Steve Gelsi

Jet-engine aftermarket company prices above the top of its range for its trading debut on Wednesday

StandardAero Inc. priced its initial public offering above the top of its estimate range in a sign of a strong stock-market debut on Wednesday as the second-largest IPO by dollar volume so far in 2024.

StandardAero (SARO) priced 60 million shares at $24 a share for proceeds of $1.44 billion with underwriters Goldman Sachs, KKR, Jefferies, Morgan Stanley, UBS, BofA Securities, Guggenheim Securities and Leerink Partners.

The IPO priced above the deal's estimated range of $20 to $23 a share in a sign of healthy demand from investors. On Sept. 27, the company also increased the number of shares in the IPO to 60 million from 46.5 million shares.

It's one of the few IPOs so far this year to crack the $1 billion mark, along with Lineage Inc. (LINE), which raised $4.4 billion in July; Viking Holdings Ltd. (VIK), which raised $1.45 billion in April; and Kaspi KZ (KSPI) in January.

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

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.

StandardAero is a portfolio company of private-equity firm Carlyle Group Inc. (CG), which acquired the company from Veritas Capital in 2019.

FrontView REIT IPO debuts as second deal for Wednesday

FrontView REIT priced 13.2 million shares at $19 a share for proceeds of $250.8 million in its initial public offering on Wednesday.

The Dallas-based real estate investment trust is going public at the middle of its estimated price range of $17 to $21 with underwriters Morgan Stanley, JPMorgan, Wells Fargo and BofA Securities.

FrontView manages a portfolio of 278 properties in 31 states, with a focus on direct frontage on high-traffic roads.

Ciara Linnane contributed.

-Steve Gelsi

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10-02-24 0741ET

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