Cirrus Aircraft is preparing for an initial public offering (IPO) after filing an application with the Hong Kong Stock Exchange on June 8. The company did not disclose how much it plans to raise through the listing, choosing instead to submit a draft application proof with heavily redacted information. London-based International Finance Review reported that Cirrus is aiming to raise $300 million.
While U.S.-headquartered, Cirrus has opted not to go public via a Wall Street flotation under Securities and Exchange Commission rules. The company, which makes the SR20/22 piston aircraft and SF50 Vision Jet, was sold in 2011 to China Aviation Industry General Aircraft (CAIGA) for approximately $210 million. CAIGA is a subsidiary of the state-owned Aviation Industry Corp. of China (AVIC), which makes airliners and military aircraft.
“From time to time, Cirrus Aircraft explores options to raise additional capital,” the company told AIN. “Our current work, made possible by the contributions of the Cirrus Aircraft team, has positioned the company as a global leader in personal aviation. A natural next step in that journey is exploring additional business and capital funding structures that enable even larger and more stable growth ahead.”
According to Cirrus, it does not yet have a defined timeline to complete the IPO as its listing applicating is now being vetted by Hong Kong’s financial regulators. “Raising additional capital will allow us to further invest in our people, new product development, production capabilities, facilities, and efficiencies, as well as enable and expand global service capabilities and strengthen our IT and business infrastructure,” the company added. “Further announcements will be made in accordance with the listing rules of the Hong Kong Stock Exchange. We stay committed to elevating our customers’ ownership experience and staff member experience for many years to come.”
According to the filing, the capital will be used to fund a slew of activities—from product improvements and lifecycle solutions to additional simulation capabilities and facility expansions. This includes the modernization of Cirrus’s production lines at its headquarters in Duluth, Minnesota, and at its Grand Forks, North Dakota facility. The production upgrades are slated to take 24 to 36 months.
Plans Could Include Move into Advanced Air Mobility
Signaling a possible move into the new advanced air mobility sector, additional plans call for expanding research and development in autonomous and simplified vehicle operations, avionics technologies, data analysis and management systems, alternative fuel and propulsion solutions, and next-generation aircraft products, the application said. “This may include developing aircraft that incorporate new technologies and address changes in the aircraft industry including those from a regulatory perspective, such as changes to fuel requirements or developments in electric aircraft.”
In 2022, Cirrus delivered 539 SR20/22-series aircraft and 90 Vision Jets. The General Aviation Manufacturers Association has ranked the SR2X as the best-selling single-engine piston model for the past 21 years. According to Frost & Sullivan, based on delivered units in 2022, the SR2X achieved 46.3 percent of the market share in the fixed tricycle gear piston aircraft, while the Vision Jet accounted for 25.8 percent of the market segment for single-pilot pressurized turbine aircraft priced at $7 million or less.
Cirrus Aircraft's revenues last year were $894 million, with a net profit of $88 million. As of Dec. 31, 2022, the company had $243 million in annual cash and cash equivalents, $113 million in inventories, and $413 million in current liabilities.