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LOAR Stock IPO: 7 Things to Know as Loar Starts Trading Today

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The IPO market appears to have reopened, with plane parts maker Loar Holdings (NYSE:LOAR) now a publicly traded company. Shares of LOAR stock surged more than 65% higher on their opening day, with approximately 5 million shares having traded hands as of the time of writing.

As a supplier of aircraft parts to defense companies and other niche aerospace operations, Loar is certainly an intriguing company to consider. Among its core products are brakes and water purification systems for planes — essential pieces of putting together well-operating aircraft.

One of the more prominent IPOs this year, with Loar initially valued at around $4 billion, this company joins other firms who have also gone public this week, with what appears to be greater interest from private firms to take their shares public. Let’s dive into what investors may want to know about this IPO.

LOAR Stock Soars on Opening Day

  • Loar announced the initial pricing of its IPO yesterday at $28 per share.
  • The company sold 11 million shares at this price, which was above its initially estimated range of $24-$26 per share.
  • An additional 30-day option available to underwriters (which looks increasingly likely to be exercised) for 1.65 million shares at the $28 level was also provided.
  • Loar intends to use the net proceeds, which could be as much as $354.2 million, to repay debt and for general corporate purposes.
  • Shares of LOAR stock opened at $45 per share and currently trade at $46 per share at the time of writing, surging more than 60% upon the commencement of trading.
  • The aerospace parts manufacturer reported a net loss of $4.6 million on revenue of $317 million in 2023.
  • Jeffries and Morgan Stanley led the offering, according to details provided in the filing.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


Article printed from InvestorPlace Media, https://investorplace.com/2024/04/loar-stock-ipo-7-things-to-know-as-loar-starts-trading-today/.

©2024 InvestorPlace Media, LLC

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