Medline Completes $6.26 Billion IPO, Becomes Largest Healthcare Public Offering of 2025
核心洞察
Medline Industries (搜索) raised $6.26 billion in its Nasdaq debut, marking the largest U.S. IPO since 2021 and achieving a $46 billion valuation with shares rising 20.7% on opening day.
The medical supply giant, acquired by private equity firms Blackstone (搜索), Carlyle (搜索) and Hellman & Friedman (搜索) for $34 billion in 2021, sold 216 million shares at $29 each in an upsized offering.
The company reported strong financial performance with net income of $977 million on revenue of $20.6 billion for the nine months ended September 27, demonstrating consistent growth through economic cycles.
Medical supply manufacturer and distributor Medline Industries (搜索) completed its highly anticipated initial public offering today, raising $6.26 billion on the Nasdaq in the largest U.S. IPO since Rivian's 2021 listing. Shares opened at $35, representing a 20.7% premium to the $29 IPO price, valuing the Northfield, Illinois-based company at $46 billion.
The offering, which sold 216 million shares in an upsized deal, marks the largest private equity-backed IPO ever and the biggest global IPO of 2025, surpassing Chinese battery maker CATL's $5.3 billion Hong Kong offering in May.
Strong Financial Performance Drives Investor Interest
Medline's robust financial metrics have attracted significant investor attention. The company reported net income of $977 million on revenue of $20.6 billion for the nine months ended September 27, up from $911 million on $18.7 billion in the same period a year earlier. Founded in 1966 by brothers Jon and Jim Mills, Medline has posted net sales growth every year since its inception through economic cycles and the COVID-19 pandemic.
"We're going to run the business exactly the same way we ran it yesterday. It (the IPO) just allows us to buy down debt and amplify our voice," said Medline CEO Jim Boyle.
Market Position and Growth Prospects
The company operates as a key manufacturer and distributor of medical supplies including surgical kits, gloves and gowns used by hospitals worldwide, competing with established players McKesson and Cardinal Health. Medline's dominant position in branded medical equipment, including surgical gloves and wheelchairs, has appealed to investors drawn to its growth prospects and relative insulation from broader economic swings.
In its SEC filing, Medline stated it expects its total addressable market to be $375 billion annually. "We expect our market opportunity in the US will grow over the long term, driven by secular tailwinds, including an ageing population and the growing prevalence of chronic conditions (搜索), which are expected to drive elevated volumes and increased health expenditures over the long term," the company wrote.
Private Equity Exit Strategy
The IPO represents a significant milestone for Medline's private equity owners. In 2021, a consortium led by Blackstone (搜索), Carlyle (搜索), and Hellman & Friedman (搜索) acquired the company in a leveraged buyout valued at approximately $34 billion, marking one of the largest LBOs of all time and the biggest since the global financial crisis era of 2007 to 2009.
"This investment from some of the world's most experienced and successful private investment firms will enable us to accelerate that strategy while preserving the family-led culture that is core to our success," said Charlie Mills, CEO of Medline at the time of the acquisition.
Manufacturing Resilience and Tariff Considerations
While Medline sources and manufactures products in tariff-affected regions such as Asia, the company maintains significant domestic production capabilities. Boyle noted that Medline owns 33 facilities, including 19 in the United States, with approximately half of its output coming from the U.S. or North America, providing some insulation from potential trade disruptions.
Market Recovery and Future Outlook
The successful Medline offering contributes to a resilient 2025 IPO market that has raised a combined $46.15 billion in first-time share sales, excluding blank-check firms—the highest since the 2021 boom. The total number of traditional offerings rose more than 21% in 2025 compared to the previous year.
"This is a very different profile than the typical growth IPO — Medline is profitable, cash-generative, and well understood, which resonates in the current market," said Jeff Zell, senior research analyst at IPO Boutique.
Goldman Sachs (搜索), Morgan Stanley (搜索), BofA Securities (搜索) and J.P. Morgan (搜索) acted as lead bookrunning managers for the offering, with the successful listing potentially encouraging more private equity-backed firms to advance their public market plans.