BREAKING: Medline lines up the biggest U.S. IPO of 2025
Medline has set the terms for a blockbuster New York listing, and the numbers are bold. The medical supplies giant plans to sell 179 million shares at 26 to 30 dollars each. At the top of the range, the deal would raise about 5.37 billion dollars. That pegs Medline’s equity value near 50 to 55 billion dollars, putting this offering at the top of the 2025 IPO league table.
The deal, the demand, the message
Bookrunners include Goldman Sachs, Morgan Stanley, BofA Securities, and J.P. Morgan. Large institutions have already lined up as cornerstones, with about 2.35 billion dollars of interest. The founding Mills family plans to buy up to 250 million dollars of stock. That mix sends a clear signal. Big money wants in, and the family is staying close.
Cornerstones matter. These are investors who commit to buy at the offer. Their early support helps steady the book and reduce pricing risk. It can also lift confidence for the first day of trading.
Medline is on track to be the largest U.S. IPO of 2025, a key test for private equity exits outside tech.
Why this IPO matters for the market
This is the kind of industrial scale offering that sets the tone for 2026. If Medline prices well and trades strong, more private equity backed listings will follow. Expect healthcare distribution, chemicals, building products, and business services to watch closely. These owners need public markets open to recycle capital and reduce leverage.
The market read is simple. A smooth deal says investors can look past tech and still find growth and cash flow. A choppy deal would warn that size and leverage remain a hurdle. The gap matters for banks too. Big IPO fees depend on a durable window, not a one off pop.
Watch the final price versus the 26 to 30 dollar range, the size of any upsize, and day one stability.
Inside Medline’s numbers and plan
Medline is one of the largest makers and distributors of medical and surgical supplies. It sells everything from exam gloves to gowns to sterile kits. It is embedded across hospitals, clinics, and long term care. Scale is its edge, and scale shows in the numbers.
For the first half of 2025, Medline posted 13.5 billion dollars in net sales and 655 million dollars in net income. Annualized, that points to roughly 27 billion dollars in sales. At a 50 billion dollar valuation, the price to sales ratio sits near 1.9. That is not a frothy tech multiple. It reflects a stable, volume driven business with steady demand.
The company carries heavy debt after a 2021 buyout by top private equity firms. Expect most of the IPO proceeds to go toward paying that down. Lower debt means lower interest costs, more flexibility, and a stronger rating profile over time. That is good for a distributor that lives on logistics, working capital, and scale.
High leverage and tariff exposure can pressure margins and earnings if input costs or rates rise.
Pricing, risks, and what to watch next
This roadshow will test global demand for a large, non tech U.S. listing. Medline sources products across Asia and Mexico, so tariff shifts matter. Freight and labor costs also feed into margins. With a big debt stack, interest rates are a key watch item. Every quarter point counts in interest expense.
If the book builds fast, bankers can lean toward the top of the range. If long only investors push for a value cushion, pricing may settle mid range. Either way, cornerstone demand should help anchor the outcome. Secondary market support, including a standard greenshoe, can help smooth early trading.
Key checkpoints for investors:
- Order book depth from real money funds, not just hedge funds
- Final pricing versus range, and any increase in size
- Use of proceeds, with a clear path to debt reduction
- Early trading stability and volume
Frequently Asked Questions
What is Medline aiming to raise?
Medline is targeting about 5.37 billion dollars by selling 179 million shares at 26 to 30 dollars each.
What valuation is the company seeking?
The target equity value is roughly 50 to 55 billion dollars, making it the largest U.S. IPO of 2025.
How will Medline use the proceeds?
Most proceeds are expected to repay debt from the 2021 leveraged buyout, improving the balance sheet.
Who is backing the deal?
Cornerstone investors have lined up about 2.35 billion dollars. The Mills family plans to buy up to 250 million dollars. Goldman Sachs, Morgan Stanley, BofA Securities, and J.P. Morgan are leading the underwriting.
What are the main risks?
High leverage, tariff and supply chain exposure, plus rate sensitivity. Execution on debt paydown will be crucial to protect margins.
Conclusion
Medline’s IPO is more than a single listing. It is a market test for size, for private equity exits, and for investor appetite beyond tech. The company brings scale, steady demand, and clear cash uses. The balance sheet is the swing factor. If pricing holds firm and trading is orderly, the 2026 pipeline just found its green light. If not, sellers may wait for a calmer sky. For now, all eyes are on the range, the book, and the first print.
