StandardAero, Inc. (SARO) Plans to Raise $1,000 Million in October 2nd IPO

StandardAero, Inc. (SARO) is planning to raise $1,000 million in an IPO on Wednesday, October 2nd, IPO Scoop reports. The company plans to issue 46,500,000 shares at $20.00-$23.00 per share.

In the last year, StandardAero, Inc. generated $4.6 billion in revenue and had a net loss of $35.1 million. StandardAero, Inc. has a market-cap of $7 billion.

J.P.Morgan, Morgan Stanley, BofA Securities, UBS Investment Bank, Jefferies, RBC Capital Markets, Carlyle, CIBC Capital Markets, HSBC, Mizuho Securities, Societe Generale and Wolfe Nomura Alliance served as the underwriters for the IPO and Citizens JMP, Macquarie Capital, AmeriVet Securities, Drexel Hamilton and Santander were co-managers.

StandardAero, Inc. provided the following description of their company for its IPO: “We believe that we are 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. (Incorporated in Delaware) We provide a comprehensive suite of critical, value-added aftermarket solutions, including scheduled and unscheduled engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. We serve a crucial role in the engine aftermarket value chain, connecting engine original equipment manufacturers (“OEMs”) with aircraft operators through our aftermarket services, maintaining longstanding relationships with both. We command a leading reputation that is based upon our strong track record of safety, reliability and operational performance built over our more than 100 years of successful operations in the aerospace aftermarket. Our business consists of an attractive mix of end markets, customers and engine platforms. Our revenue is highly diversified across the commercial, military and business aviation end markets. We believe this diversification provides us with significant resiliency, while affording us the ability to take advantage of new business opportunities that arise. In addition, diversification across engine OEMs and platforms reduces our exposure to idiosyncratic events that may impact demand related to a specific aircraft or engine type. Within our markets, we hold leadership positions on most of the engine platforms we serve, with an estimated 80% of our Engine Services sales in 2023 from engine platforms where we hold #1 or #2 positions globally. Our platform portfolio consists of a healthy mix of mature, growth and next generation programs and includes many of the engines that power the world’s most prevalent aircraft. For example, we provide support for the CFM56, which powers the Boeing 737NG and Airbus A320ceo family narrowbody aircraft and currently has the largest installed base of any engine platform, the LEAP-1A/-1B, which power the next generation of narrowbody aircraft and are expected to become the most widely fielded platform family in the world by the early 2030s, and the CF34, which powers many of the world’s most utilized regional jets. On several platforms, we hold contracts directly with the OEM that designates us as the primary or sole outsourced provider of maintenance services for the engine. Furthermore, with approximately 77% of our revenue in the year ended December 31, 2023 derived from long-term contractual agreements, our financial profile is characterized by a significant amount of predictable, recurring revenue supported by the highly regulated nature of aircraft engine maintenance requirements. We are also one of the largest independent engine component repair platforms globally, providing services to commercial aerospace, military, land and marine and oil and gas end markets. We have made substantial investments in our Component Repair Services business, which provides attractive margins, significant growth opportunities and synergies with our Engine Services business.  Note: Net loss and revenue are for the year that ended Dec. 31, 2023. (Note: StandardAero, Inc. filed its S-1/A on Sept. 23, 2024, disclosing the terms for its IPO: 46.5 million shares at a price range of $20.00 to $23.00 to raise $999.75 million – nearly $1 billion. Background: StandardAero, Inc. filed its  S-1 for its IPO on Sept.6, 2024, without disclosing terms. Estimated IPO proceeds are $100 million, a placeholder figure; some IPO professionals believe that this IPO could raise as much as $1 billion.)   “.

StandardAero, Inc. was founded in 1911 and has 7300 employees. The company is located at 6710 North Scottsdale Road, Suite 250 Scottsdale, AZ 85253 and can be reached via phone at (480) 377 3100.