The IPO Buzz: StandardAero Upsizes IPO by 29 Percent to $1.29 Billion

StandardAero (SARO Proposed) increased its IPO’s size by 29 percent early today to raise $1.29 billion – up from $1 billion originally. In an S-1/A filing dated today – Friday, Sept. 27, 2024 – StandardAero upsized its IPO to 60 million shares – up from 46.5 million initially – and kept the price range at $20.00 to $23.00 – to raise $1.29 billion, if priced at the $21.50 mid-point of its range. Of the 60 million shares in the IPO, the aerospace engine aftermarket services company is offering 53.25 million shares and the selling shareholders are offering 6.75 million shares. The selling shareholders are affiliates of The Carlyle Group and GIC Private Limited, the prospectus said. The company will not receive any proceeds from the sale of the selling shareholders’ stock. StandardAero’s IPO is set for pricing Tuesday night, Oct. 1, 2024, to trade Wednesday, Oct. 2, 2024, on the New York Stock Exchange. J.P.Morgan and Morgan Stanley are the leading joint book-runners. The  book-running team includes BofA Securities,  UBS Investment Bank,  Jefferies and  RBC Capital Markets. Other investment banks on the team include Carlyle, CIBC Capital Markets, HSBC, Mizuho Securities, Societe Generale and Wolfe Nomura Alliance. StandardAero says it will use the IPO’s proceeds to pay off about $908.2 million in debt, according to the prospectus. StandardAero, Inc., based in Scottsdale, Arizona, says it believes that it is “the world’s largest independent pure-play provider of aerospace engine aftermarket services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets,” according to the prospectus. The company is Incorporated in Delaware. StandardAero is not profitable. For the year that ended Dec. 31, 2023, StandardAero reported a net loss of $35.1 million on revenue of $4.56 billion, according to the prospectus. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions or anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.