Doncasters raises $919m in upsized NYSE IPO at $33 a share

Doncasters raised $919 million in its upsized New York initial public offering after pricing 27.9 million shares at $33 apiece, capitalizing on demand that exceeded available stock by more than 30 times.

The company, which manufactures precision cast components and superalloys for aerospace and industrial gas turbine engines, sold 27,858,585 ordinary shares at the top end of its revised range, according to a statement Wednesday. The offering was upsized from an earlier plan, with gross proceeds reaching approximately $919.3 million before underwriting discounts and commissions.

Underwriters led by Jefferies and Morgan Stanley have a 30-day option to purchase an additional 4.2 million shares, which would bring total proceeds to about $1.06 billion if exercised in full. Barclays, Moelis, RBC Capital Markets and Rothschild & Co also served as bookrunners on the deal.

Doncasters intends to use the net proceeds, together with about $144 million from concurrent private placements, to repay outstanding indebtedness including a shareholder payment-in-kind loan. The remainder will fund working capital, growth projects and amounts due under a cash-based management incentive plan, the company said.

The ordinary shares began trading Thursday on the New York Stock Exchange under the ticker DPC. The stock opened at $30, below the IPO price, giving the company a market capitalization of about $4.23 billion. Doncasters reported $886 million in revenue over the past 12 months but remains unprofitable, with earnings per share of negative $1.48.

DPC Holdings Ltd., which operates as Doncasters, runs 14 manufacturing facilities across North America, Europe, the United Kingdom and Asia. The company produces precision cast components and nickel- and cobalt-based superalloys used in jet engines and power generation turbines.

The strong demand for Doncasters' IPO — with orders exceeding 30 times the available shares, according to earlier reports — signals investor appetite for industrial manufacturing assets tied to aerospace and energy end markets. The company's ability to upsize and price at the top of its range suggests robust institutional interest despite its current lack of profitability.

This article is for informational purposes only and does not constitute investment advice.