Medline Inc., one of the largest distributors of medical supplies in the U.S., priced its initial public offering at the high end of expectations, raising about $6.6 billion in a deal that ranks among the biggest public listings of the year.
The Northfield, Illinois–based company said late Tuesday it priced 216 million shares at $29 each, valuing the closely held healthcare supplier well into the tens of billions of dollars. Medline’s shares are set to begin trading on Wednesday on the Nasdaq Global Select Market under the ticker MDLN, with the transaction expected to close on Thursday.
Most of the new capital will be used to pay down debt, strengthening Medline’s balance sheet after years of rapid expansion under private ownership. The remainder will support ongoing operations and cover the costs of the offering. A smaller portion of the shares sold will go toward buying out stakes held by some of Medline’s pre-IPO owners.
The offering was increased in size during the marketing process, signaling strong investor demand for large, established healthcare suppliers with steady revenue and global reach. Underwriters also have the option to purchase additional shares over the next 30 days, which could further increase the total amount raised.
Medline supplies medical-surgical products, logistics and supply chain services to hospitals, health systems, surgery centers, nursing homes, and other care settings. The company operates a vast distribution network and manufactures many of its own private-label products, giving it scale and pricing leverage in a healthcare system under constant pressure to control costs.
The company employs more than 43,000 people worldwide and does business in more than 100 countries, making it one of the most significant privately run healthcare suppliers to enter the public markets in recent years.
Goldman Sachs, Morgan Stanley, Bank of America, and J.P. Morgan led the underwriting group for the offering, which also included more than two dozen additional banks.
Medline said its registration statement was declared effective by the Securities and Exchange Commission on Tuesday. The company emphasized that the offering was made by prospectus only.
The IPO marks a major milestone for Medline, which has operated for decades as a privately held, family-owned business before taking on outside investors and now turning to public markets to support its next phase of growth.
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