Aerospace parts maker Doncasters raises $919.3 million in US IPO

June 25 (Reuters) - Doncasters said ‌on Wednesday it ​had ​raised $919.3 million in its U.S. initial public offering, as the nearly 250-year-old aerospace parts maker heads for its New York debut after ‌a turnaround. The Derby, United Kingdom-based company sold 27.9 million shares ⁠in the IPO at $33 apiece, above the marketed range of $28 and $32 apiece. The listing comes ‌over six years after Doncasters' ‌debt restructuring, when lenders took control from now-defunct buyout firm Dubai International Capital. It also marks a key milestone in Doncasters' turnaround, with ​the firm investing over $170 million since 2020 to modernize facilities and expand capacity. Doncasters' journey began in 1778 in Sheffield, UK, as a file-making ⁠business. It has since grown into a key global aerospace and industrial parts supplier. "Doncasters heritage is helpful, ​because a 250-year history supports the story that the company has the know-how and reliability in a demanding industry. ​However, history only gets you so far," IPOX ‌Research Associate Lukas Muehlbauer said. "The more important part of the story is the turnaround since the 2020 ownership change, ⁠with revenue having more than doubled." AI ENERGY-DEMAND PLAY Doncasters, which competes with Howmet and Precision Castparts, makes a wide range of complex parts - including blades and vanes - ⁠for aerospace engines and industrial gas turbines. Demand for gas turbines has surged as ​rapid data center expansion drives electricity demand beyond the capacity of grid infrastructure. That has boosted demand for blades and vanes, which are routinely replaced over the lifecycle of ‌a gas turbine. "Doncasters positions itself not just a defense story, but also an AI energy-demand play, therefore combining two ‌of the most popular investment themes in recent months," Muehlbauer said. Jefferies and ⁠Morgan Stanley acted as lead joint ‌bookrunners. Doncasters will begin ​trading on the NYSE under the symbol “DPC” on Thursday.

(Reporting by Arasu Kannagi Basil and Ruchika Khanna in Bengaluru; Editing by ‌Sahal Muhammed)

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