StandardAero valued at $10.4 bln as shares jump in NYSE debut
Stock opens up 29%
Raises $1.44 bln in third biggest U.S. IPO of 2024
Carlyle to remain majority shareholder
Adds executive commentary in paragraphs 6,8,9, 11 & 12
By Niket Nishant and Echo Wang
Oct 2 (Reuters) -Carlyle-backed StandardAero SARO.N racked up a $10.38 billion valuation after its shares opened 29% above the offer price in their NYSE debut on Wednesday, as investors bought into what could be one of the last major U.S. listings of the year.
The aircraft maintenance services provider had priced its offering above range to raise $1.44 billion in the third biggest U.S. initial public offering of 2024.
StandardAero's shares opened at $31, compared with the IPO price of $24. The company had initially targeted a range of $20 to $23.
Carlyle CG.O, which offloaded some of its stake, will remain the majority shareholder of StandardAero after the IPO. Singapore's sovereign wealth fund GIC, another pre-IPO investor, also sold some stake.
Reuters was first to report in April that Carlyle was weighing options for StandardAero, including a sale and an IPO.
"There's a lot of public equity investor appetite for (aerospace aftermarket) sector exposure and investors appreciate the quality of StandardAero's business," said Doug Brandely, a partner at Carlyle who leads its aerospace investments.
Aftermarket services refer to inspections, maintenance, repairs and overhauls for aerospace engines.
"So as we evaluated alternatives, particularly given our conviction in the long-term outlook for the business, we concluded that the IPO was the best path for us and for the company," said Brandely, who also sits on StandardAero's board.
The company will continue to "generate additional growth from strategic mergers and acquisitions," he added.
'DURABLE POSITION'
Founded in 1911, StandardAero provides maintenance, repair and overhaul services to clients in commercial, business and military aviation sectors.
"(Being) a public company and operating in the public equity markets gives us access to a whole additional group of business partners to allow us to continue to expand our services to the different sub segments of the aerospace market," said Russell Ford, chairman and chief executive of StandardAero.
"The airlines are more focused on flight operation and not deploying their cash resources towards engine maintenance... so more and more of that work has been migrating our way. We're in a very good, solid, durable portion of the market that will continue to expand, I think for many years to come."
Strong travel demand against the backdrop of slower new plane deliveries has compelled carriers to rely on older jets that typically require complex maintenance.
The Scottsdale, Arizona-based company's customers include aircraft engine makers GE Aerospace GE.N, RTX unit RTX.N Pratt & Whitney, Rolls-Royce RR.L and carriers such as American Airlines AAL.O and Southwest Airlines LUV.N.
U.S. IPOs have picked up pace in the last few weeks as a rally in equities and renewed hopes of a soft landing for the economy draw back investors after a brief summer lull.
Such share sales have raised $32.2 billion from 155 deals this year as of Sept. 30, outpacing 2022 and 2023 levels, according to Dealogic.
StandardAero's listing could be among the last major new issues in 2024 as most analysts expect a substantial recovery only next year.
"We're coming to a pocket in the calendar where you have a whole bunch of uncertainty around the (presidential)election, which is probably going to keep a lid on activity over the next couple of months," said Mark Schwartz, EY Americas IPO and SPAC advisory leader.
Still, a rally in equities may encourage some to push forward with their plans.
"I anticipate that companies already in the pipeline, especially those that stand to benefit from the AI wave, will push forward with their IPOs before the election," said Joe Endoso, CEO of private market investment platform Linqto.
Reporting by Prakhar Srivastava, Niket Nishant and Nathan Gomes in Bengaluru; Editing by Sriraj Kalluvila and Shailesh Kuber
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
