The IPO Buzz: Loar (LOAR) Launches $275 Million IPO

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. Its products include auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, 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. 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.

(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.  To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.  Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.  Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.