Carlyle-backed StandardAero prices IPO above range to raise $1.44 billion

By Echo Wang

NEW YORK (Reuters) -StandardAero, a U.S. aircraft maintenance services provider, priced its U.S. initial public offering above its indicated range to raise $1.44 billion, the company said on Tuesday.

Scottsdale, Arizona-based StandardAero, which is backed by buyout firm Carlyle, priced its offering at $24 apiece, above its range of $20 to $23.

Earlier in the day, Reuters exclusively reported about the $24 price offering, citing people familiar with the matter.

StandardAero and some of its existing shareholders sold 60 million shares, making it the biggest U.S. IPO since cold-storage warehouse operator Lineage raised $4.45 billion in June.

The IPO values StandardAero at roughly $8 billion, based on about 334.5 million outstanding shares.

Carlyle did not respond to a Reuters request for comment.

Founded in 1911, StandardAero provides maintenance, repair and overhaul services to clients in sectors such as commercial and military aviation, as well as energy. The company partners with major aircraft engine makers, including Rolls-Royce 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 its most recent regulatory filing.

Carlyle acquired StandardAero from buyout firm Veritas Capital for about $5 billion in 2019.

The IPO comes as U.S. equity capital markets are starting to bounce back slowly, after a lackluster summer that was 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 IPO.

StandardAero's shares are expected to start 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.

(Reporting by Echo Wang in New York , Additional reporting by Disha Mishra in Bengaluru; Editing by Anirban Sen, David Evans and Jamie Freed)