Medline Surges 41% in Nasdaq Debut as 2025's Largest IPO

Medline's Remarkable IPO Performance

Medical supply giant Medline made a stunning debut on the New York stock exchange, with its shares rising 41% above their offer price. This impressive performance capped off a successful year for new listings and generated optimism for the future of the IPO market in 2026.

The company's shares closed at $41 after opening at $35, compared to the initial offer price of $29 per share. This surge in value highlights the strong investor confidence in Medline's business model and growth potential.

A Record-Breaking Offering

Medline, which was acquired in 2021 by Blackstone, Carlyle, and Hellman & Friedman in one of the largest leveraged buyouts in history, sold 216 million shares to raise $6.26 billion in an upsized offering. This made it the largest private-equity-backed IPO ever, showcasing the company's significant scale and market position.

The IPO valued Medline at $46 billion at the time of its opening, making it the largest U.S. initial public offering since Rivian's 2021 listing. It also marked the largest IPO globally in 2025, surpassing the previous record set by Chinese battery maker CATL's $5.3 billion Hong Kong offering in May.

CEO's Perspective

Jim Boyle, CEO of Medline, emphasized that the company would continue to operate as it always has. "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," he said.

Boyle highlighted that the IPO provides the company with the opportunity to reduce debt and enhance its visibility in the market. Despite the success of the IPO, the company remains focused on its core operations and long-term growth strategy.

Strong Business Model Amid Tariff Concerns

Based in Northfield, Illinois, Medline was founded in 1966 by brothers Jon and Jim Mills. The company is a key manufacturer and distributor of medical supplies such as surgical kits, gloves, and gowns used by hospitals worldwide. It competes with major players like McKesson and Cardinal Health.

Despite sourcing and manufacturing products in regions affected by tariffs, such as Asia, Medline owns 33 facilities, including 19 in the United States. About half of its output comes from the U.S. or North America, providing a degree of insulation against tariff-related challenges.

"We make things that cost pennies, not thousands of dollars, and having a robust, diverse geography that has primary, secondary and tertiary locations — from a manufacturing perspective — allows us the ability to shift locations to mitigate some of the tariffs," Boyle added.

Investor Confidence and Financial Performance

Medline's dominant position in branded medical equipment, including surgical gloves and wheelchairs, has attracted significant investor interest. Investors are drawn to the company's growth prospects and its relative resilience to broader economic fluctuations.

Jeff Zell, senior research analyst at IPO Boutique, noted, "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."

Financially, Medline 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. This consistent growth underscores the company's strong financial health and operational efficiency.

Strong IPO Pipeline for 2026

U.S. IPO activity remained resilient in 2025, despite challenges such as market volatility in April, fueled by President Donald Trump's sweeping tariffs, as well as the longest government shutdown. First-time share sales in the U.S. this year have raised a combined $46.15 billion—excluding blank-check firms—the highest since the 2021 boom, according to Dealogic data.

Nicholas Einhorn, director of research at Renaissance Capital, stated, "The IPO market continued its recovery in 2025 despite the headwinds of tariffs and a government shutdown, which prevented what could have been a more significant rebound."

Several high-profile companies, including liquefied natural gas producer Venture Global, Swedish fintech Klarna, cloud-computing firm CoreWeave, and stablecoin issuer Circle, were among the largest U.S. IPOs of 2025.

Looking ahead, Wall Street anticipates a stronger pickup in 2026, with high-profile firms such as Elon Musk's SpaceX preparing for a potential stock market flotation. Private equity firms are also expected to bring a wave of portfolio companies to market after years of extending holding periods, as investors emerge from the post-pandemic IPO slump.

Steve Wise, co-head of Americas private equity at Carlyle, noted, "I think this was a bellwether transaction for the IPO market, especially the sponsor IPO market. It will give people more confidence that really strong businesses that have growth can have success in the public markets."

Goldman Sachs, Morgan Stanley, BofA Securities, and J.P. Morgan acted as lead bookrunning managers for Medline's offering.