Doncasters Group said it has received orders surpassing 30 times the amount of stock available in its U.S. initial public offering, according to reporting Wednesday. The heavy demand has the aerospace and industrial gas turbine engine parts manufacturer preparing to set a final price modestly above its marketed range.
Company sources told prospective investors they expect the IPO to price $1 or $2 above the marketing range, rather than within it. The firm had been guiding pricing at the top of the $28 to $32 range as of Tuesday, signaling intent to target the upper end of that window.
Because demand has materially outpaced supply, investors who placed orders may receive substantially fewer shares than they requested, the report noted. Doncasters initially filed to offer 33,333,333 shares on the New York Stock Exchange with the $28 to $32 per share range. Using the top of that range as a reference point, the company would have an implied valuation in excess of $3.7 billion.
The company has submitted paperwork to list under the name DPC Holdings Ltd. Management expects shares to begin trading on the New York Stock Exchange on Thursday under the ticker symbol NYSE:DPC.
Several prominent investment banks are participating in the deal. Jefferies Financial Group Inc., Morgan Stanley, Barclays Plc and Moelis & Co. are among the banks working on the offering.
Deal mechanics and next steps
Doncasters' filing specifies the size of the offering and the marketed price range. With orders reported at more than 30 times available stock, the distribution of shares to subscribers will likely be constrained. Final allocations and the ultimate per-share price will be set ahead of the planned NYSE listing.
What remains contingent
The definitive valuation and the allocation outcomes are dependent on the final pricing and allocation decisions that will be announced prior to the start of trading. The company and its underwriters will finalize those elements in the run-up to the expected Thursday listing.