Duluth-Based Cirrus Aircraft May Tap Foreign Investors With Hong Kong Stock Offering

Jun. 13—DULUTH — The city's largest manufacturer may soon gain access to additional financial resources that could help it grow.

Aviation publications across the nation have been abuzz since Duluth-based Cirrus Aircraft filed paperwork with the Hong Kong Stock Exchange on June 8, setting the stage for an expected initial public offering in the near future.

Cirrus representatives did not respond to the News Tribune's specific queries about this latest pending development Tuesday afternoon, instead issuing a blanket statement, but the International Finance Review, a publication based in London, reports the company hopes to raise about $300 million by taking the business public in Hong Kong. No specific timeline for the launch of publicly traded equity shares has yet been revealed.

An entity known as China Aviation Industry General Aircraft (CAIGA), an offshoot of the government-owned Aviation Industry Corp. of China, acquired Cirrus in 2011 and has led the business to new heights, driving annual billings last year to more than $765 million, behind the sale of 629 aircraft, including 90 personal jets, in addition the company's bread-and-butter piston-driven airplanes.

The manufacturer issued a written statement regarding the potential IPO that said: "From time to time, Cirrus Aircraft explores options to raise additional capital.

"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.

"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."

Duluth Mayor Emily Larson greeted news of the potential new investment the local manufacturer could be poised to attract with enthusiasm, saying: "We are excited that Cirrus is expanding their financial capacity."

She also pointed to

the airplane manufacturer's recent acquisition of the former Northwest Airlines maintenance base in Duluth

, a facility that had evolved into a Maintenance Repair and Overhaul (MRO) operation under the leadership of AAR, a firm that picked up stakes when the COVID-19 pandemic sent the commercial airline industry into a deep, if temporary, descent.

"Having just flipped the empty MRO, which was an $800,000 annual liability for the city, into a $15 million Research & Development Center for Cirrus, we're eager to see their vision continue to take hold here. Having Cirrus here in Duluth places us squarely in the center of international aviation innovation, and that's something we're very incredibly proud of and happy to support," Larson said.

CAIGA's efforts to attract more investment in Cirrus are also viewed as a positive sign by Rachel Johnson, president and CEO of APEX — short for the Area Partnership for Economic Expansion.

"I think this news definitely shows Cirrus' commitment to continued investments in our region, especially coming on the heels of its announcement of the innovation center. They definitely are investing in technology and they're really making their mark on the aviation industry right here in Minnesota," she said.

Johnson noted that

Cirrus employs more than 1,600 people

in Minnesota, and 25% of its suppliers are based in the same state.

As for the prospect of an IPO fueling additional development, she said, "They're continuing to drive and push and grow. It clearly illustrates that they're not content to sit still."

In its filing, company officials stressed that Cirrus will not be traded stateside and therefore should not be subject to regulation by the U.S. Securities and Exchange Commission.

A statement Cirrus issued indicated the company's motivations have not changed in the face of evolving financial developments: "We stay committed to elevating our customers' ownership experience and staff member experience for many years to come."

This story was edited at 9:30 p.m. on June 13 to include comment from Cirrus. It was originally posted at 6:18 p.m.

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