(Bloomberg) -- StandardAero Inc. is seeking to raise $1.1 billion in its initial public offering, after its backer Carlyle Group Inc. had decided to pursue a listing for the aircraft maintenance services provider rather than a sale.
The company is offering 46.5 million shares, according to a filing Monday with the US Securities and Exchange Commission. The shares are being marketed for $20 to $23 each, the filing shows. There is a potential over-allotment of 6.975 million shares from affiliates of Carlyle and Singaporean sovereign wealth investor GIC Pte, according to the filing.
Carlyle had explored a potential sale for StandardAero but decided to pursue an IPO because bids valued the company below what it’s expected to reach in a listing, Bloomberg News has reported.
At the top end of the price range, StandardAero would have a market value of $7.5 billion, based on the number of outstanding shares.
Funds affiliated with Blackrock Inc., Janus Henderson Group Plc and Norway’s $1.8 trillion sovereign wealth fund separately indicated their interest in buying up to $275 million worth of shares at the IPO price, the filings shows.
StandardAero is the largest pure-play provider of aerospace engine after-market services for fixed and rotary wing aircraft, serving the commercial, military and business aviation end markets, according to its filing. Customers include GE Aerospace, Honeywell International Inc. and Rolls-Royce Holdings Plc.
The Scottsdale, Arizona-based company had a profit through the first half of the year, reversing earlier annual losses, according to the filing. For the first half of the year, StandardAero had net income of $8.6 million on revenue of $2.6 billion. That compared with a loss of about $12.6 million on $2.3 billion in revenue during the same period in 2023.
Carlyle completed its purchase of StandardAero from Veritas in 2019. A statement at the time didn’t disclose financial terms of the deal. Carlyle will continue to control the company after the IPO, according to the filing.
JPMorgan Chase & Co. and Morgan Stanley are leading the offering, the filing shows. Bank of America Corp., UBS Group AG, Jefferies Financial Group Inc. and Royal Bank of Canada are also among the total of 17 book-running managers and co-managers. StandardAero plans for its shares to trade on the New York Stock Exchange under the symbol SARO.
(Updates with market value in fourth paragraph and additional detail throughout. A previous version corrected the shares Carlyle is offering for sale.)
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