Carlyle-Backed StandardAero Aims for $7.7 Billion Valuation in Upsized IPO, Reports Reuters

Carlyle-backed aviation services provider StandardAero is aiming for a valuation of up to $7.69 billion in an increased initial public offering, reflecting a robust investor interest in profitable, scalable companies.

The company is now looking to sell 60 million shares, with an anticipated price range of $20 to $23 per share, which could raise approximately $1.38 billion. This marks a significant increase from an earlier goal of up to $1.07 billion.

More than $155 million of the proceeds will be allocated to Carlyle and Singapore’s sovereign wealth fund GIC, which are both current investors selling portions of their shares in the IPO.

In April, reports indicated that Carlyle was exploring options for StandardAero, including a potential sale. The firm had acquired the U.S. aircraft maintenance services provider from Veritas Capital for around $5 billion in 2019.

Founded in 1911, StandardAero serves numerous customers, including major airlines like American Airlines and Southwest Airlines, as well as aircraft engine manufacturers such as Rolls-Royce, GE Aerospace, and Pratt & Whitney.

The company’s revenue increased by 12% in the first half of 2024, with a net income of $8.6 million, compared to a loss of $12.6 million in the same period last year.

As the IPO market recovers from previous downturns, investors have shown a preference for established companies with solid financials rather than those without a clear path to profitability.

Analysts suggest that strong performances from some recently listed startups could further stimulate additional IPOs.

The Renaissance IPO Index, a gauge of broader market trends, has risen approximately 14% so far this year.

J.P. Morgan and Morgan Stanley are serving as the lead underwriters for StandardAero’s IPO.