By Echo Wang
NEW YORK (Reuters) -StandardAero, a U.S. provider of aircraft maintenance services, has priced its U.S. initial public offering above its stated range to raise $1.44 billion, the company said on Tuesday.
Scottsdale, Arizona-based StandardAero, which is backed by buyout firm Carlyle, has priced its offering at $24 each, above the $20 to $23 range.
Earlier in the day, Reuters exclusively reported the $24 price offer, citing people familiar with the matter.
StandardAero and some of its existing shareholders sold 60 million shares, making it the largest U.S. initial public offering since cold storage warehouse operator Lineage raised $4.45 billion in June.
The IPO values StandardAero at approximately $8 billion, based on approximately 334.5 million shares outstanding.
Carlyle did not respond to a Reuters request for comment.
Founded in 1911, StandardAero provides maintenance, repair and overhaul services to customers in industries such as commercial and military aviation, as well as the energy sector. The company works with major aircraft engine manufacturers, including Rolls-Royce (OTC:) and GE Aerospace-backed CFM International.
StandardAero reported a net profit of $8.6 million on revenue of $2.6 billion in the first half of 2024, compared with a loss of $12.6 million on revenue of $2.31 billion a year earlier, according to the most recent filing to the supervisors.
Carlyle acquired StandardAero from buyout firm Veritas Capital in 2019 for about $5 billion.
The IPO comes as U.S. equity capital markets slowly begin to recover after a lackluster summer hampered by market volatility that forced many companies to postpone their offerings.
Reuters was first to report in April that Carlyle was weighing options for StandardAero, including a possible initial public offering.
Shares of StandardAero are expected to begin trading on the New York Stock Exchange on Wednesday under the ticker “SARO.”
JPMorgan and Morgan Stanley are the lead underwriters for the offering. Other bookrunners included BofA, UBS, Jefferies and RBC Capital Markets.
