Private equity-backed aerospace services provider StandardAero Inc. announced plans Monday for a highly anticipated $1 billion initial public offering (IPO), which could be one of the largest in 2024. The Scottsdale, Arizona-based company, represented by Latham & Watkins LLP, intends to offer 46.5 million shares priced between $20 and $23, with a midpoint valuation of $7 billion.

If successful, the StandardAero $1B IPO will mark a significant milestone for the aerospace industry and contribute to the growing list of billion-dollar public offerings this year.

StandardAero $1B IPO  : Backed by Carlyle and GIC

StandardAero is primarily owned by private equity powerhouse The Carlyle Group and Singaporean sovereign wealth fund GIC Private Ltd., which together hold about 97% of the company’s shares. Institutions such as BlackRock Inc., Janus Henderson Investors, and Norges Bank Investment Management are also expressing interest as cornerstone investors, committing up to $275 million to support the IPO.

The IPO’s proceeds will largely be used to repay debt, according to filings with the U.S. Securities and Exchange Commission.

Aerospace Leader in Maintenance Services

StandardAero, a leader in aerospace engine maintenance and repair, provides mission-critical services to a wide range of customers, including airlines and military operators. Its client base includes major engine manufacturers like Honeywell and Rolls-Royce. The company, which reported $4.6 billion in revenue for 2023, services approximately 5,000 customers globally.

In its SEC filing, StandardAero emphasized the importance of its engine aftermarket solutions, which are integral to its customers' flight operations and partners' businesses.

IPO Marks Next Chapter After Carlyle Acquisition

The Carlyle Group acquired StandardAero from Veritas Group in 2019 for roughly $5 billion. Earlier this year, Carlyle had considered selling StandardAero outright for about $10 billion. However, the decision to go public signals a strategic shift, allowing investors to participate in the company’s continued growth in the aerospace sector.

If successful, the StandardAero $1B IPO would become the fourth IPO of 2024 to raise at least $1 billion, joining warehouse giant Lineage Inc., which raised $4.4 billion in July.

Market Outlook and Underwriters

StandardAero’s IPO is launching during a late-year resurgence in IPO activity, with several other companies, including natural gas producer BKV Corp., set to raise funds this week. Analysts expect a more robust IPO market in 2025, driven by potential interest rate cuts and political clarity following the U.S. presidential election.

Shares of StandardAero will trade on the New York Stock Exchange under the symbol “SARO.” J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and BofA Securities, Inc. are among the lead underwriters.