Medline shares soared 41% after this year's biggest IPO. Should you buy them?

Shares of Medline, a giant in the medical products market, rose by 41% on the first day of trading on the stock exchange. Analysts note that investors are attracted by the stability of the company's business, its profitability and stable revenue growth. The success of this debut was an important signal for the entire IPO market in the U.S., which showed the maximum amount of funds raised since 2021.

Shares of the manufacturer and distributor of medical products Medline soared more than 41% of the IPO price, which became the largest this year, and ended trading on December 17 at $ 41. The market capitalization of the company thus reached approximately $ 54 billion. At the premarket on December 18, quotations were down 3.6%.

Medline manufactures and supplies medical supplies, from gloves and protective gowns to tables that are used in hospitals and clinics. "We're the largest company you've probably never heard of, with the fact that we're literally everywhere," CEO Jim Boyle told CNBC, "Historically, we've done very little advertising and marketing, and this placement gives us an opportunity to build our presence and expand brand perception.

The company's strong position in the branded medical equipment segment attracts investors, Reuters analysts note. In their opinion, Medline is a stable business with good prospects, largely protected from macroeconomic fluctuations.

Medline is markedly different from typical growth companies going public, said Jeff Zell, an analyst at research firm IPO Boutique. It's a profitable player that generates stable cash flow and is well understood by investors, a quality particularly sought after in current market conditions, he said. For the nine months ended Sept. 27, Medline's net income rose 7.2% to $977 million, while revenue rose 10.2% to $20.6 billion.

Popular financier and CNBC anchor Jim Cramer also praised the company's solid revenue growth, but said he would prefer to wait for a correction - near the $29 to $30 levels - before buying the stock after its rally. "The IPO went pretty darn well. In fact, so good that Medline looks a little overvalued to me right now," he said on the telecast.

Freedom Finance analyst Alem Bektemirov said earlier that with $16.5 billion in debt on Medline's balance sheet and $952 million in cash, the fair value of the company's stock is about $30.7, 25 percent below the closing price on Dec. 17.

The Medline deal is an indicator of the health of the IPO market, says Steve Wise, co-chairman of private equity for the Americas at Carlyle Investment Group. According to him, the successful listing of a strong and growing business strengthens investor confidence that quality companies are able to raise capital in the public markets.

Activity in the U.S. IPO market remained strong in 2025 despite volatility in April caused by President Donald Trump's administration's duties as well as the federal government's longest-ever shutdown, Reuters notes. According to Dealogic data, total funds raised in listings on U.S. exchanges this year reached $46.15 billion, the highest since 2021. Purely traditional offerings are up more than 21% from 2024.

Wall Street expects an even more active market next year, the agency points out . Companies such as Elon Musk's SpaceX, crypto exchange Kraken, and ChatGPT developer OpenAI may be preparing to go public. Private equity funds, in turn, may bring a significant number of portfolio companies to the market after several years of extended holding periods, Reuters specifies.

This article was AI-translated and verified by a human editor