Aviation part manufacturer Loar Holdings Inc. (LOAR Proposed) disclosed the terms for its IPO – 11.0 million shares at a price range of $24.00 to $26.00 – and launched the $275 million deal early today – Wednesday, April 17, 2024. The IPO is expected to price next week. (See: IPO Calendar ) This is a New York Stock Exchange listing. Loar is expected to have a market cap of $2.2 billion, based on mid-point pricing at $25.00.
Jefferies and Morgan Stanley are leading the joint book-runners’ team, which includes Citigroup, Moelis & Co. and RBC Capital Markets.
Most of the IPO’s proceeds will be used to pay off debt, Loar says in the prospectus.
Loar Holdings, based in White Plains, N.Y., designs, manufactures and sells “niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems,” the prospectus says.
Auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings and latches are among Loar’s products. The product offerings include hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection RAM air components, sealing solutions and motion and actuation devices, among others, according to the prospectus.
About 85 percent of Loar’s 2023 net sales were derived from proprietary products where the company believes that it holds market-leading positions, Loar says in the prospectus.
Loar, founded in 2012, employs about 1,400 people.
For the year that ended Dec. 31, 2023, Loar reported a net loss of $4.62 million on revenue of $317.48 million, according to financial statements in the prospectus.
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