Doncasters Raises $919.3 Million Through US IPO and NYSE Debut
Doncasters' IPO Success and Strategic Growth
IPO Details and Market Reception
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.
Company History and Turnaround
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 and Market Position
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 and Editorial Credits
(Reporting by Arasu Kannagi Basil and Ruchika Khanna in Bengaluru; Editing by Sahal Muhammed)