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

By Ciara Linnane

Aircraft engine aftermarket services provider to be one of 2024’s largest IPOs

StandardAero Inc., a provider of aftermarket services for aircraft engines, announced the terms of its initial public offering on Monday. It plans to offer 46.5 million shares at a price of $20 to $23 per share.

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

The Scottsdale, Arizona-based company has filed to list on the New York Stock Exchange under the symbol “SARO (SARO)”.

JP Morgan and Morgan Stanley are the lead underwriters on a team of 17 banks working on the transaction.

Founded in 1911, the company serves customers in the commercial, military and helicopter aviation industries, as well as business aviation, with approximately 7,300 employees at more than 50 facilities worldwide.

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

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

On September 5, StandardAero changed its name from Dynasty Parent Co. Inc.

In its IPO filings, the company describes itself as the world’s largest independent provider of aftermarket services for airplanes and helicopters.

“We offer a comprehensive set of key, high-value aftermarket solutions, including scheduled and unscheduled engine maintenance, repair and overhaul, engine component repair, in-flight and field service support, asset management and engineering solutions,” the documents read.

The company’s net loss history is primarily due to debt service costs, which totaled $3.276 billion as of June 30. The company has also made 11 acquisitions over the past seven years, adding engine platforms, new capabilities and intellectual property, and expanding into new geographies it believes have the best growth potential.

The deal comes after the Renaissance IPO ETF (IPO) gained 13.8% for the year, while the S&P 500 gained 19.6%.

-Ciara Linnane

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09-23-24 0747ET