StandardAero stock gains top 30% after pricing IPO above its estimated range
By Steve Gelsi
Jet-engine aftermarket company's stock gains about $7 over its $24 IPO price in its trading debut Wednesday
StandardAero Inc. generated a 34% gain in its stock-market debut on Wednesday in a strong showing from the private-equity-backed jet-engine repair and maintenance business.
It's also one of the few initial public offerings to top $1 billion in proceeds so far in 2024.
StandardAero's stock (SARO) opened at $31 and rose to $32.23 a share in recent trading for an ample gain over its $24 IPO price.
Signs of a healthy first day of trading came late Tuesday when the IPO priced above its estimated range of $20 to $23 a share, in a sign of strong demand. On Sept. 27, the company also increased the number of shares in the IPO to 60 million from 46.5 million shares.
StandardAero raised $1.44 billion by offering 60 million shares at $24 a share, with underwriters Goldman Sachs, KKR, Jefferies, Morgan Stanley, UBS, BofA Securities, Guggenheim Securities and Leerink Partners on the deal.
It's one of the rare IPOs to crack the $1 billion mark this year, joining Lineage Inc. (LINE), which raised $4.4 billion in July; Viking Holdings Ltd. (VIK), which raised $1.45 billion in April; and Kaspi.kz's (KSPI) deal of about $1 billion back in January.
Founded in 1911 and headquartered in Scottsdale, Ariz., StandardAero serves commercial aerospace, helicopter, military and business-aviation clients, with about 7,300 employees working at more than 50 facilities across the globe.
StandardAero had net income of $8.6 million in the first six months of the year, after a loss of $12.6 million in the year-earlier period. Revenue rose to $2.58 billion from $2.31 billion.
StandardAero changed its name from Dynasty Parent Co. Inc. on Sept. 5.
StandardAero is a portfolio company of private-equity firm Carlyle Group Inc. (CG), which acquired the company from Veritas Capital in 2019.
FrontView REIT IPO falls below offering price
FrontView REIT Inc. (FVR) opened at $18.35 and rose to $18.61 in midday action, falling below its $19-a-share IPO price.
FrontView priced 13.2 million shares at $19 a share for proceeds of $250.8 million in its IPO.
The Dallas-based real-estate investment trust went public at the middle of its estimated price range of $17 to $21, with underwriters Morgan Stanley, JPMorgan, Wells Fargo and BofA Securities on the deal.
FrontView manages a portfolio of 278 properties in 31 states, with a focus on direct frontage on high-traffic roads.
Ciara Linnane contributed.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
10-02-24 1334ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks