Medline soared 21% in trading debut, capping a strong year for new listings and fueling optimism for 2026.

The company, acquired in 2021 by Blackstone BX.N, Carlyle CG.O and Hellman & Friedman in one of the largest private-equity deals, sold 216 million shares in an upsized offering at $29 apiece, compared with the marketed range of $26 and $30 per share.

U.S. IPO activity has stayed resilient in 2025, shrugging off the impact of market volatility in April, fueled by President Donald Trump's sweeping tariffs, as well as the longest government shutdown.

Before Medline's raise, Chinese battery maker CATL's 300750.SZ $5.3 billion Hong Kong offering in May was the biggest IPO globally this year, according to data compiled by LSEG.

Liquefied natural gas producer Venture Global VG.N, Swedish fintech Klarna KLAR.N, cloud-computing firm CoreWeave CRWV.O and stablecoin issuer Circle CRCL.N were among the largest U.S. IPOs of 2025.

ROBUST BUSINESS BUT TARIFFS A CONCERN

Northfield, Illinois-based Medline, which was founded in 1966 by brothers Jon and Jim Mills, is a key manufacturer and distributor of medical supplies such as surgical kits, gloves, and gowns used by hospitals worldwide.

The company, which competes with McKesson MCK.N and Cardinal Health CAH.N, has posted net sales growth every year since its inception through economic cycles and the COVID-19 pandemic.

"This is a very different profile than the typical growth IPO — Medline is profitable, cash-generative, and well understood, which resonates in the current market," said Jeff Zell, senior research analyst at IPO Boutique.

Meanwhile, Medline expects a $150 million to $200 million hit from tariffs to income before taxes in fiscal 2026.

SPACEX HEADLINES STRONG 2026 SLATE

Wall Street is anticipating a stronger pickup next year, with high-profile firms such as Elon Musk's SpaceX preparing for a possible stock market flotation.

Companies that delayed their listing plans due to the shutdown could also provide early 2026 momentum.

"The IPO market from next year onwards is likely to see sizeable businesses coming through to public markets, led by SpaceX alongside possible listings for Anthropic and maybe even OpenAI further down the line," said Samuel Kerr, head of equity capital markets at Mergermarket.

"These are the most sought-after private businesses in the world. If they are successfully listed, it will go some way to shifting the narrative back towards public markets away from staying private for longer."

BOOST TO SPONSOR ACTIVITY

Medline's IPO marks a significant milestone on several fronts. The IPO now ranks as one of the biggest-ever PE-backed listings.

A successful listing could also encourage more PE-backed firms to move ahead with their plans.

Sponsors are also anticipated to become more active next year as pressure mounts to return more cash to their investors.

Blackstone-backed heating and cooling systems developer Copeland and Hellman & Friedman-backed auto repair firm Caliber have confidentially filed for New York IPOs.