Qatar Investment Authority Commits $75 Million to Doncasters Before IPO
QIA's Strategic Investment and Doncasters' IPO Details
Overview of the Investment
June 22 (Reuters) - Qatar's sovereign wealth fund is placing a $75 million bet on aerospace precision parts maker Doncasters Group ahead of its U.S. listing.
The Qatar Investment Authority (QIA) agreed to buy the shares at the IPO price, according to an SEC filing on Monday.
Share Acquisition Terms
At the midpoint of the IPO price range, QIA would receive about 2.5 million ordinary shares through the private placement, the filing showed.
Doncasters' IPO Structure
The Derby, United Kingdom-based company is seeking up to $746.7 million in the IPO by offering 23.3 million shares priced between $28 and $32 apiece.
If the IPO prices at the top of the range, the aerospace parts maker would have a market value of $4.51 billion based on the outstanding shares listed in its filing.
Company Background 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.
Additional Private Placement and Listing Details
The QIA's placement comes in addition to a concurrent private placement, in which certain existing shareholders, including directors, agreed to buy $66 million of Doncasters' stock.
Jefferies and Morgan Stanley are lead joint bookrunners. Doncasters will list on the NYSE under the symbol "DPC".
(Reporting by Pragyan Kalita in Bengaluru; Editing by Vijay Kishore)
