- Medline closed an upsized IPO on Dec. 18, 2025, selling 248,439,654 Class A shares at $29 and fully exercising the underwriters' option.
- Gross proceeds were about $7.2 billion, the largest U.S. IPO of 2025 and a record private-equity-backed IPO.
- Medline plans to use proceeds from 179 million shares to repay senior secured term-loan debt and the rest for general corporate purposes.
- Proceeds from roughly 69.4 million shares will fund purchases or redemptions of equity interests held by pre-IPO owners, and the stock trades on Nasdaq as MDLN.
Read More
The closing of Medline’s upsized IPO is a significant financial event both for the company and for the broader IPO landscape. By issuing 248.44 million Class A shares at $29.00 each, Medline not only raised substantial capital—roughly $7.2 billion gross—but also committed to repaying its leveraged debt structure, reinforcing financial discipline in the wake of its major private equity-backed buyout in 2021.
The use of proceeds is two-fold: first, over 179 million of those shares’ proceeds will go toward debt reduction—specifically, senior secured term loan facilities—improving leverage metrics and potentially enhancing interest coverage and financial flexibility. Second, the remaining ~69.4 million shares (including the underwriters’ option) will provide liquidity to pre-IPO owners via redemption or purchase of equity interests.
This dual use is typical of private equity portfolio companies transitioning to public ownership: deleveraging while providing exit or partial cash‐outs for legacy investors. The IPO’s size—largest in 2025 and a record among PE-backed IPOs—indicates strong market demand, especially in healthcare/supply chains, and may serve as a bellwether for similar large-scale IPOs.
Strategic implications include improving Medline’s credit profile (lower leverage, better debt cover), giving external shareholders clarity through new governance agreements, and setting up a public valuation of the business—which was previously privately held since 1977. Challenges remain: sustaining growth under public market scrutiny, maintaining margins, and managing investor expectations, especially around branded vs private label mix and supply chain risks. Open questions include how Medline will perform against its net debt to EBITDA targets post-IPO, what organic vs inorganic growth avenues it will pursue, and how competitive pressures in medical-surgical distribution may affect its pricing power.
Supporting Notes
- Medline closed an upsized IPO of 248,439,654 Class A shares priced at $29.00 each, including the full exercise of a 32,405,172-share option granted to underwriters.
- Net proceeds from 179,000,000 shares will be used to repay outstanding indebtedness under Medline’s senior secured term loan facilities.
- Proceeds from 37,034,482 shares and from the option shares will be used to purchase or redeem outstanding equity interests of certain pre-IPO owners.
- The IPO raised about $7.2 billion in gross proceeds.
- Medline’s shares are listed on Nasdaq Global Select under the ticker MDLN.
- Prior to the IPO, Medline had net sales of approximately $20.6 billion and adjusted EBITDA of about $2.7 billion for the first nine months of 2025, and carried net debt of $15 billion.
- Governance changes were implemented: new limited partnership agreement; tax and exchange agreements; amended charter authorizing large share classes; incentive plans adopted.
- Post-IPO market response was strong: share price rose ~41% in debut, closing at ~$41 per share.