Medline, biggest U.S. IPO since 2021, jumps 21% in trading debut

"Medline Inc. shares surged 21% in their trading debut Wednesday, after the medical supplier raised $6.26 billion in the year's biggest initial public offering. The shares opened at $35 each, versus the IPO price of $29. Medline, based in Northfield, Ill., manufactures and distributes medical supplies such as gloves, gowns and exam tables used by hospitals and doctors. It offers a broad portfolio of about 335,000 medical-surgical products and has a supply chain that enables next-day delivery to 95% of US customers, the filings show."

"My aspiration is to be the Costco of health care, said Jim Boyle, the company's chief executive officer, before listing similarities to the retailer including fees paid by customers, a robust supply chain, private brands and loyal customer bases."

"Medline, which counts Blackstone Inc., Carlyle Group Inc. and Hellman & Friedman among its backers, sold 216 million shares in an upsized offering that priced near the top of the marketed range. The trading gives the company a market value of about $47 billion, based on the shares listed in its regulatory filings. The three private equity firms sealed a $34 billion deal to acquire a majority stake in the company in 2021, in one of the largest leveraged buyouts of all time."

"The IPO surpassed the previous largest listing this year, Chinese battery maker Contemporary Amperex Technology Co. Ltd.'s $5.26 billion Hong Kong offering. In the US, it's the biggest IPO since Rivian Automotive Inc.'s $13.7 billion deal in 2021. Medline's debut ends the US IPO calendar with a bang, after market disruptions that delayed several long-awaited listings, and sets the stage for a banner 2026 led by a potential blockbuster SpaceX debut that's set to be the largest on record."

Medline completed a $6.26 billion initial public offering that opened at $35 per share versus a $29 IPO price, producing a 21% first-day gain and a roughly $47 billion market value. The Northfield, Ill.-based company manufactures and distributes about 335,000 medical-surgical products, including gloves, gowns and exam tables, and claims next-day delivery to 95% of U.S. customers. Private equity firms Blackstone, Carlyle and Hellman & Friedman are major backers after a $34 billion deal for a majority stake in 2021. Medline sold 216 million shares in an upsized offering priced near the top of the marketed range, making it one of the largest U.S. IPOs in recent years.

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