What You Need to Know About Aerospace Parts Manufacturer Loar’s IPO [Video]

Loar Holdings, a manufacturer of parts for aerospace and defense companies, filed an S-1 Wednesday with the Securities and Exchange Commission (SEC), putting itself on the road to an initial public offering (IPO).

The company said it intends to offer 11 million shares, which could rise to 12.65 million if the IPO‘s underwriters exercise their option to purchase additional shares, at a price of $24 to $26 per share, raising up to $286 million.

After the IPO, Loar estimates that Abrams Capital will own about 44% of the company’s stock, with the IPO shares representing about 13% of the company’s 88 million total shares. At the midpoint of Loar’s range at $25 per share, the 88 million shares would give the company a total valuation of about $2.2 billion.

Loar said it intends to use the money it raises to pay off existing debts. The company’s stock will debut on the New York Stock Exchange (NYSE) under the ticker “LOAR.”

Loar manufactures dozens of …