StandardAero IPO Update

By Echo Wang
NEW YORK (Reuters) – StandardAero, a U.S. aircraft maintenance services provider, is poised to set its U.S. initial public offering (IPO) at $24 per share, above the anticipated range of $20 to $23, aiming for a significant debut in the stock market this year.

Scottsdale, Arizona-based StandardAero, backed by buyout firm Carlyle, is nearing sufficient investor interest to launch the share sale, which could help raise $1.44 billion by selling 60 million shares. This would become the largest U.S. IPO since cold-storage operator Lineage raised $4.45 billion in June, potentially valuing StandardAero at around $8 billion based on approximately 334.5 million outstanding shares.

Last week, StandardAero increased the sizing of its IPO, though both StandardAero and Carlyle have not responded to requests for comment.

Founded in 1911, StandardAero offers maintenance, repair, and overhaul services across sectors like commercial and military aviation, as well as energy. The company collaborates with major aircraft engine manufacturers, including Rolls-Royce and GE Aerospace-backed CFM International.

In its recent regulatory filing, StandardAero reported a net profit of $8.6 million on revenue of $2.6 billion for the first half of 2024, in contrast to a loss of $12.6 million on revenue of $2.31 billion from the same period last year.

In 2019, Carlyle acquired StandardAero from Veritas Capital for approximately $5 billion.

The IPO comes as U.S. equity capital markets are slowly recovering after a lackluster summer filled with volatility that led many companies to delay their offerings. Reuters reported in April that Carlyle was considering an IPO for StandardAero.

StandardAero’s shares are anticipated to start trading on the New York Stock Exchange on Wednesday under the ticker ‘SARO’.
JPMorgan and Morgan Stanley are the lead underwriters for this offering.