Rate Of Return
Buffett Apprentice[US Stock IPO] MDLN, the leader in medical consumables manufacturing and distribution
Medline is a global leader in medical consumables manufacturing and distribution, founded in 1966 in Northfield, Illinois, USA. It specializes in medical gloves, surgical protective clothing, and various medical consumables, with a product portfolio exceeding 550,000 items. Its business covers medical institutions in over 125 countries, and it operates more than 25 manufacturing centers across six countries, making it an industry leader. This U.S. stock market listing is also the world's largest IPO this year.
Medline is currently in the process of its IPO, with the stock code MDLN and an issue price range of $26 to $30. It aims to raise approximately $4.654 billion to $5.37 billion, with a market capitalization of $37.3 billion to $55.3 billion. The subscription period is from December 9 to December 16, and the expected listing date is April 17.
Medline is the largest supplier in the medical-surgical ("med-surg"") products and supply chain solutions sector, covering all aspects of medical care. Based on the total net sales of med-surg products, we provide key products for daily use, which are widely applied in various care settings, from hospitals and surgical centers to doctor's offices and post-acute care facilities. Through our two main segments—the Medline brand and supply chain solutions—we offer approximately 335,000 med-surg products, including surgical and procedural kits, gloves and protective apparel, urological and incontinence care, wound care, and consumable laboratory and diagnostic products. We hold leading positions in multiple end markets and numerous key product categories.
Additionally, we distribute products through an extensive global network of 69 distribution facilities, with a total warehouse area of 29 million square feet and a proprietary fleet of over 2,000 MedTrans trucks, enabling us to provide next-day delivery to 95% of U.S. customers. Our integrated business model and customer-centric culture help reduce costs and enhance value for stakeholders. This forms the foundation of our sustainable recurring revenue base. Since its inception, the company has achieved a compound annual growth rate (""CAGR"") of 18% in net sales.
The company's operating revenues from 2022 to 2024 were $21.448 billion, $23.231 billion, and $25.507 billion, respectively, with a year-on-year revenue growth of 9.8% in 2024. Net profits from 2022 to 2024 were -$25 million, $234 million, and $1.2 billion, respectively, with a year-on-year net profit growth of 412.82% in 2024. The company performed well in previous years, but the growth rate in Q3 2025 has noticeably slowed.
If Medline's U.S. IPO is priced at the upper limit of the range, $30, its valuation will reach $55 billion, corresponding to an EV/EBITDA multiple of approximately 21.2x. Among its U.S. peers in the medical consumables industry, MCK (McKesson) has an EV/EBITDA multiple of around 17x, CAH (Cardinal Health) around 12x, and OMI (Owens & Minor) around 10x. Overall, Medline's valuation appears somewhat high.
Subscription Strategy:
Medline is a manufacturer and distributor of medical consumables. With a portfolio of over 335,000 medical products and a supply chain advantage that enables next-day delivery to 95% of U.S. customers, it has become an industry leader. This is also the world's largest IPO this year. The company's net profit grew by 412.82% year-on-year in 2024, but the growth rate has noticeably slowed in Q3 2025. If priced at the upper limit of $30, its valuation would reach $55 billion, corresponding to an EV/EBITDA multiple of 21.2x, which is relatively high compared to peers. However, as an industry leader, it's still worth participating. Currently, only moomoo offers subscription for this new stock. Referring to the previous IPO of BLSH, where investors subscribing over $3,404 were uniformly allocated 92 shares, I plan to subscribe around $3,000 this time!
My remarks represent personal views only and do not constitute any investment advice. The stock market carries risks; invest with caution!
Follow me: Retail Investor Lao Yu
$Cardinal Health(CAH.US) $Owens & Minor(OMI.US) $McKesson(MCK.US)
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