The $6 Billion Healthcare IPO Test: Medline Hits the Market as Wall Street Bets on Boring, Durable Growth

Medline is set to make its long-awaited return to public markets today in what stands as one of the most consequential IPOs in years, both for healthcare and for private equity. The medical-surgical supply giant priced its offering Tuesday night at $29 per share, near the top of its marketed range, raising $6.26 billion and valuing the company at roughly $54.5 billion. Shares are expected to begin trading today on the Nasdaq Global Select Market under the ticker MDLN, with the debut closely watched as a test of IPO demand outside of the AI and fintech sweet spots.

Founded in 1966 and headquartered in Northfield, Illinois, Medline is the largest provider of medical-surgical products and supply chain solutions in the U.S. healthcare system. The company manufactures and distributes roughly 335,000 products, ranging from surgical gloves, gowns, and masks to wound care, diagnostics, wheelchairs, and the familiar newborn blankets used in hospital delivery wards nationwide. Medline operates through two core segments: Medline Brand, which consists of its proprietary products, and Supply Chain Solutions, which distributes third-party manufactured goods. The business is deeply embedded across all points of care, including hospitals, surgery centers, physician offices, and post-acute facilities, giving it a uniquely broad footprint in healthcare consumption.

The IPO itself was meaningfully upsized , reflecting strong institutional demand. Medline sold approximately 216 million Class A shares, up from an earlier plan of 179 million, at $29 per share, above the midpoint of the $26–$30 range. The deal was led by Goldman Sachs, Morgan Stanley, Bank of America, JPMorgan, Barclays, Citi, Deutsche Bank, Jefferies, and UBS. According to reports, investor demand was multiple times oversubscribed, with indications of interest exceeding available shares by nearly 10x during the bookbuilding process. Cornerstone investors, including Durable Capital, Janus Henderson, Viking Global, and Singapore’s sovereign wealth fund, expressed interest in purchasing up to $2.4 billion worth of shares, while Medline’s founding family committed to buying up to $250 million in stock.

Medline is majority owned by a private-equity consortium led by Blackstone, Carlyle, and Hellman & Friedman, which acquired the company in a landmark leveraged buyout in 2021 valued at roughly $34 billion. That transaction was one of the largest LBOs since the global financial crisis and left Medline with a substantial debt load. While the PE sponsors are not selling shares in the IPO, the offering allows Medline to materially deleverage. Proceeds will primarily be used to pay down debt, reducing total debt from approximately $16.8 billion to about $12.8 billion and targeting a net debt-to-EBITDA ratio below 3 over time. Even after the IPO, Blackstone, Carlyle, Hellman & Friedman, and a family-controlled vehicle will each retain roughly 17.4% of the voting power, ensuring continued sponsor influence.

Financially, Medline enters the public markets with scale, consistency, and modest growth rather than explosive upside. For the first nine months of 2025, the company generated $20.6 billion in net sales, up 10.3% year over year, with adjusted EBITDA of $2.7 billion and net income of $977 million. That compares with $18.7 billion in revenue and $911 million in net income over the same period in 2024. For full-year 2024, Medline reported $25.5 billion in revenue, $1.2 billion in net income, and adjusted EBITDA of $3.4 billion, translating to EBITDA margins just over 13%. Roughly half of revenue comes from Medline Brand products, but that segment generates more than 80% of EBITDA, reflecting higher margins and strong recurring demand, as nearly 90% of branded sales are consumables.

The company’s appeal lies in its resilience. Medline highlights more than 50 consecutive years of net sales growth, including expansion through every major recession and healthcare crisis, from the 2008 financial downturn to the COVID-19 pandemic. Growth has been overwhelmingly organic, supported by expanding relationships with large hospital systems, increasing share of wallet, and healthcare utilization trends tied to aging demographics. While tariffs and supply chain exposure to Asia remain a risk, Medline’s scale, logistics network, and mission-critical product mix have helped insulate it from broader economic volatility.

As Medline opens for trade today, investors will be watching not only price action but also spillover effects across the medical device and healthcare supply chain space. Potential sympathy names include Cardinal Health, Owens & Minor, Henry Schein, and McKesson, all of which operate in adjacent distribution or supply roles. Device manufacturers such as Stryker, Boston Scientific, Medtronic, and Baxter could also see incremental attention, particularly if Medline’s debut reinforces demand stability across hospitals and procedural settings. On the private equity side, Blackstone, Carlyle, and Hellman & Friedman-linked assets may also draw interest as investors assess exit momentum.

Ultimately, Medline’s IPO is less about hypergrowth and more about durability, scale, and balance sheet repair. In a market still cautious after years of volatility and uneven IPO outcomes, MDLN will be judged on whether steady healthcare demand and predictable cash flows can command a premium valuation. If the stock trades well today, it may signal that investors are once again willing to embrace large, mature businesses—provided the fundamentals are boring in all the right ways.