Medline’s $6.3B IPO tops global listings in 2025 as US equity markets regain momentum

Medical-supplies distributor Medline has raised $6.26 billion in an initial public offering, claiming the title of the largest IPO of the year and securing a valuation of more than $50 billion.

The US-based company, backed by private equity groups Blackstone, Carlyle and Hellman & Friedman, said on Tuesday it sold 216 million shares at $29 each in an upsized offering.

The blockbuster debut overtook Chinese battery maker Contemporary Amperex Technology Co., which had raised $5.3 billion in May and previously held the top spot for the year.

Medline’s shares are set to begin trading on the Nasdaq on Wednesday under the ticker symbol MDLN.

Upsized deal reflects strong demand

Medline had initially planned to offer 179 million shares at a price range of $26 to $30.

Strong investor demand allowed the company to increase the size of the deal and price it at the upper end of the range.

Underwriters have also been granted an option to sell an additional 32.4 million shares, which could raise a further $939.6 million if exercised in full.

Goldman Sachs, Morgan Stanley, BofA Securities, and JP Morgan acted as lead bookrunning managers, with more than 40 banks involved in the offering overall.

The scale of the syndicate underscored the size and complexity of the transaction, one of the most closely watched listings of the year.

IPO proceeds to be used to repay debt

The company said it plans to use the bulk of the IPO proceeds to repay debt, a move that has been welcomed by credit rating agencies.

Fitch Ratings said the fundraise would enhance Medline’s financial flexibility, reduce interest expense, and position the business for future growth.

Assuming around $4 billion of debt reduction after the IPO, Fitch expects a multi-notch upgrade to Medline’s credit rating, citing the strength of its business profile.

Moody’s Ratings has also placed the company’s ratings on review for upgrade, noting that the listing is likely to materially improve free cash flow through lower interest costs.

Medline’s scale and supply chain footprint

Medline is one of the world’s largest manufacturers and distributors of medical supplies, providing products such as surgical kits, gloves, protective apparel, and baby blankets to hospitals and healthcare providers globally.

Around one-third of its branded products are self-manufactured, with the remainder sourced from a diversified supplier base spanning roughly 40 countries, helping to mitigate supply chain risks.

The company reported a 7.2% year-on-year increase in net income to $977 million in the nine months ended September, while net sales rose 10% to $20.6 billion, according to its IPO prospectus.

The figures highlight steady growth despite broader pressures on healthcare supply chains and hospital spending.

A long history and private equity backing

Founded in 1966 by brothers Jon and Jim Mills, Medline first went public in 1972 before being taken private again a few years later.

In 2021, a consortium led by Blackstone, Carlyle, and Hellman & Friedman acquired the business in a $34 billion buyout, one of the largest leveraged transactions in the healthcare sector in recent years.

The IPO provides a partial exit for the private equity owners while leaving them with significant stakes in the company.

IPO market stages a comeback

Medline’s listing caps a strong year for US equity capital markets after a three-year lull.

Activity rebounded in 2025 despite bouts of volatility triggered by President Donald Trump’s sweeping tariffs and the longest-ever US government shutdown, which temporarily stalled dealmaking.

Samuel Kerr, head of equity capital markets at Mergermarket, said the successful pricing of such a large deal late in the year was a positive signal.

He added that ending the year with a transaction of this size was a strong finish to what had been a robust period for US IPOs, even after several issuers delayed listings earlier in the year.

Before Medline’s listing, liquefied natural gas producer Venture Global led the US IPO league table this year with a $1.75 billion offering in January, according to data from LSEG.

Globally, the largest flotation had been Chinese battery maker CATL’s $5.3 billion listing in Hong Kong.

Bankers expect the revival in IPO activity to extend into 2026, supported by a pipeline of high-profile companies weighing market debuts, including Elon Musk’s SpaceX, which is widely seen as a potential test of investor appetite.

Senior Wall Street executives have said that 2026 could mark a turning point for equity markets, with several large and long-delayed deals finally coming to market after years on the sidelines.

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