Sept 27 (Reuters) - Carlyle-backed aviation

services provider StandardAero is targeting a valuation of up to

$7.69 billion in an upsized initial public offering,

underscoring the strong investor appetite for profitable

companies with scale.

The company is now targeting a sale of 60 million shares

priced between $20 and $23 each, to fetch $1.38 billion, it said

on Friday. It had earlier aimed to raise up to $1.07 billion.

Up to $155.3 million of the proceeds will go to Carlyle and

Singapore's sovereign wealth fund GIC - the current investors

who are selling some shares in the IPO.

Reuters had reported in April that Carlyle was weighing

options for StandardAero, including a possible sale. It had

bought the U.S. aircraft maintenance services provider from

Veritas Capital for about $5 billion in 2019.

StandardAero, founded in 1911, counts carriers such as

American Airlines ( AAL ) and Southwest Airlines ( LUV ) as well

as aircraft engine makers Rolls-Royce, GE Aerospace

and Pratt & Whitney among its customers.

Its revenue jumped 12% in the first half of 2024. Net income

was at $8.6 million versus a loss of $12.6 million in the

year-ago period.

While the IPO market is recovering from the lows of last

year, investors have still preferred established companies with

stronger finances over those that lack a clear path to

profitability.

According to analysts, strong post-debut performances from

some startups that went public recently could also encourage

more listings.

The Renaissance IPO Index, a benchmark for

broader trends, is up about 14% so far this year.

J.P. Morgan and Morgan Stanley are the lead underwriters for

StandardAero's IPO.