Medline's Record IPO Soars 41%, Signals Healthcare Market Strength

NORTHFIELD, Ill. – December 18, 2025 – Medline Inc. made a spectacular debut on the public markets Wednesday, with its stock (Nasdaq: MDLN) surging 41% in its first day of trading. The monumental initial public offering, the largest globally in 2025, signals robust investor confidence in both the healthcare supply giant and the broader market for large-scale equity offerings.

The company announced today the closing of its upsized IPO of 248,439,654 shares of its Class A common stock. Priced at $29.00 per share, the stock opened for trading and quickly climbed, closing the day at $41.00. This impressive “IPO pop” boosted Medline’s market capitalization to approximately $54 billion, marking a significant milestone for the Northfield-based firm and its investors.

A Record-Setting Debut on Wall Street

The offering's success was underscored by the full exercise of the underwriters' option to purchase an additional 32,405,172 shares, a clear indicator of overwhelming demand. Reports indicated that the IPO was more than 10 times oversubscribed, allowing the company and its underwriting syndicate to be selective in building a base of what one source called “suitable long-term investors.”

Led by a powerhouse syndicate of global coordinators including Goldman Sachs & Co. LLC, Morgan Stanley, BofA Securities, and J.P. Morgan, the deal successfully navigated recent market volatility. Its triumphant debut is seen by market analysts as a crucial test of investor appetite for major listings, potentially opening the door for other large companies waiting in the wings. The transaction stands as the largest U.S. listing since Rivian’s offering in late 2021, providing a jolt of energy to the capital markets.

Fortifying the Financials and Rewarding Investors

The proceeds from the massive offering are earmarked for two primary objectives: deleveraging the company’s balance sheet and providing a significant liquidity event for its pre-IPO owners. Medline intends to use the net proceeds from the sale of 179,000,000 shares to repay a substantial portion of the outstanding debt under its senior secured term loan facilities.

This debt stems from the colossal $34 billion leveraged buyout in 2021, when a consortium of private equity firms—including Hellman & Friedman, Blackstone, and Carlyle—acquired a majority stake in the company. By paying down this debt, which stood at approximately $16.8 billion, Medline will significantly reduce its interest expenses, freeing up critical cash flow to reinvest in its operations and strategic initiatives.

Meanwhile, proceeds from the remaining 37,034,482 shares, along with the shares sold via the underwriters' option, will be used to purchase or redeem equity from these pre-IPO owners. This move represents a highly successful partial exit for the private equity backers, crystalizing substantial gains from their 2021 investment. The founding Mills family, which retained a significant stake after the buyout, also benefits from the creation of a public market for their holdings.

Cementing Leadership in the Healthcare Supply Chain

As the largest U.S. provider of medical-surgical products and supply chain solutions, Medline operates at the very heart of the healthcare industry. The company’s vertically integrated model is a key differentiator, with a portfolio of approximately 335,000 products—a third of which it manufactures itself across 33 facilities. Its logistical prowess is formidable, featuring 69 global distribution centers and a private fleet of over 2,000 trucks that enable next-day delivery to 95% of its U.S. customers.

The capital infusion from the IPO is expected to further fortify this market-leading position. With a healthier balance sheet, Medline is poised to accelerate investments in product innovation, international expansion, and technological advancements within its supply chain. This financial flexibility will enhance its ability to compete with other industry giants like McKesson Corporation and Cardinal Health. The company's strategic vision, as articulated by leadership, is to become the “Costco of healthcare” for equipment buyers, leveraging its scale, private-label offerings, and deep customer relationships to drive value and efficiency.

Bolstering a Critical Industry's Resilience

The significance of Medline’s strengthened financial standing extends beyond its own corporate interests, touching the core of the nation's healthcare infrastructure. The COVID-19 pandemic laid bare the vulnerabilities in global supply chains, making resilience and reliability paramount for healthcare providers. Medline’s IPO empowers it to double down on building a more robust and technologically advanced distribution network.

Investments funded by the new capital can be channeled into enhancing infrastructure, improving inventory management systems, and furthering sustainability initiatives that create long-term efficiencies. The company has already demonstrated a commitment to this area through programs like its Tote-Cart Initiative, which uses reusable shipping containers to reduce waste and transportation emissions. By reinforcing its operational backbone, Medline is better positioned to help the entire healthcare system withstand future shocks and crises. This successful public offering not only marks a new chapter for the company but also reinforces the stability of the critical supply lines that support patient care across the country and around the world.