Aerospace parts maker Doncasters, a nearly 250-year-old company, has raised USD 919.3 million in its US initial public offering (IPO). The United Kingdom-based company sold 27.9 million shares in the IPO at USD 33 apiece, above the marketed range of USD 28 and USD 32 apiece.
The listing comes over six years after Doncaster’s debt restructuring, when lenders took control from now-defunct buyout firm Dubai International Capital.
It also marks a key milestone in Doncaster’s turnaround. The firm, since 2020, has invested over USD 170 million to modernize its facilities and expand capacity.
Doncaster’s journey began in 1778 in the United Kingdom’s Sheffield as a file-making business. Since then, the venture has grown into a key global aerospace and industrial parts supplier.
Doncaster’s 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. The more important part of the story is the turnaround since the 2020 ownership change, with revenue having more than doubled,” said IPOX Research Associate Lukas Muehlbauer while interacting with Reuters.
Doncasters, which competes with supply chain players like Howmet Aerospace 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 beyond the normal industrial verticals, with rapid data center expansion driving electricity demand beyond the capacity of grid infrastructure.
The phenomenon has boosted demand for blades and vanes, components that get routinely replaced over the lifecycle of a gas turbine.
“Doncaster positions itself not just as a defense story but also as 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 has started trading on the NYSE under the symbol “DPC.”