US Stock IPO: Medical supplies company Medline goes public, with a scale expected to surpass all US-listed companies this year

U.S. medical supplies company Medline ( Nasdaq: MDLN) plans to conduct its initial public offering (IPO) in the United States soon, with a valuation of up to $55.3 billion, making it one of the largest private equity-backed IPOs in U.S. history. Medline is expected to list on Nasdaq under the ticker symbol MDLN. The IPO plans to issue 179 million shares, with an expected price range of $26 to $30 per share. Medline’s market capitalization is projected to surpass all other U.S. IPO companies this year, marking the largest private equity financing case since HCA Healthcare’s listing in 2011.

According to the latest news, Medline has received investment commitments totaling $2.35 billion from major global investors, including renowned institutions such as Baillie Gifford, Capital Group, Janus Henderson, GIC (Singapore’s sovereign wealth fund), Viking Global Investors, Durable Capital Partners, and others. Morgan Stanley’s Counterpoint Global is also among the investors. Notably, the founding family of Medline, the Mills family, plans to subscribe to $250 million worth of shares in the IPO. Please note this is market observation and not investment advice.

Medline Background and Acquisition Process

Founded in 1966 by the Mills family, Medline initially focused on manufacturing medical supplies and equipment, gradually becoming a giant in the U.S. healthcare products sector. The company has been controlled by the Mills family for many years until 2021, when they sold a majority stake for $34 billion to a private equity consortium comprising Blackstone Group, KKR, and Hellman & Friedman. This transaction is considered one of the largest leveraged buyouts in history.

Since privatization, Medline has expanded through multiple acquisitions, including the purchase of Ecolab’s surgical solutions division for $905 million. The company also invested $1.6 billion in its distribution network. These acquisitions have not only expanded Medline’s product lines but also strengthened its leading position in the global medical supplies market. During the early stages of the COVID-19 pandemic in 2020, the Mills family distributed medical supplies to nursing homes, pharmacies, and 45% of hospitals nationwide, making Medline a key supporter in the U.S. fight against COVID-19.

Medline Financial Performance and IPO Details

Medline’s IPO is expected to be traded on the Nasdaq Global Select Market under the ticker MDLN. The underwriting syndicate is led by Goldman Sachs, Morgan Stanley, Bank of America, and JPMorgan Chase, with over 40 banks participating in the offering. According to Medline’s financial reports, by September 27, 2023, the company achieved a net profit of $977 million and revenue of $20.6 billion over nine months, up from $911 million net profit and $18.7 billion revenue in the same period in 2022. Medline’s financial stability and steady growth are key highlights ahead of its IPO. If the final price approaches the top of the range, Medline’s IPO could surpass all other U.S. IPOs and potentially become the largest private equity-supported listing in the U.S. stock market.

Mills Family Capital Returns

After selling a majority stake to private equity firms in 2021, the Mills family retained some shares. According to Forbes, just before the IPO, the Mills family’s holdings were valued between $6 billion and $7 billion. Based on the latest securities filings, the value of these holdings has brought the Mills family’s total assets to at least $20 billion, far exceeding Forbes’ 2014 valuation of $1.1 billion.

Following the 2021 sale, the Mills family established a family office called Council Ring Capital and began gradually exiting Medline’s daily operations, marking the completion of their historical mission. Nonetheless, their capital returns remain substantial, and Medline is expected to maintain strong market positioning in the coming years.

Medline’s Impact

Medline manufactures a wide range of medical supplies, from neonatal blankets to various bandages. However, until the outbreak of COVID-19 in 2020, the company had not attracted widespread attention. During the pandemic, Medline played a crucial role in the U.S. response, distributing medical supplies to 45% of hospitals, pharmacies, and nursing homes nationwide. Its innovative product designs have had a profound impact on the healthcare industry, including the invention of 360-degree full-body surgical gowns, which have been widely adopted in global healthcare systems.

This article “U.S. Stock IPO: Medical Supplies Company Medline to Go Public, Potentially Surpassing All U.S. Listings This Year” first appeared on Chain News ABMedia.