FILE PHOTO: U.S. dollar notes are seen in this November 7, 2016 picture illustration. REUTERS/Dado Ruvic/Illustration/File Photo

By Arasu Kannagi Basil

Dec 8 (Reuters) - Medical supplies giant Medline said on Monday it was targeting an up to $55.3 billion valuation in its hotly anticipated U.S. initial public offering that is expected to be 2025's biggest IPO.

The Northfield, Illinois-based company is seeking to raise up to $5.37 billion by offering 179 million shares priced between $26 and $30 apiece.

With the Thanksgiving slowdown behind, the U.S. IPO market is poised for a burst of activity in the next fortnight as companies rush to seize the final 2025 window before the holiday lull kicks in.

MARQUEE IPO

Medline's blockbuster share sale is poised to be one of the year's marquee listings, serving as a key gauge of investor sentiment as markets head into 2026.

Headwinds ranging from Liberation Day to the longest-ever U.S. government shutdown have weighed on the new listings market this year. Still, IPO activity in New York this year has hit the highest level since the 2021 boom.

"The reception to Medline's IPO will be crucial as it's set to re-test the market for IPOs in sectors other than crypto, AI and fintech, which thus far has been really strong," IPOX CEO Josef Schuster said.

Medline is one of the largest manufacturers and distributors of medical supplies, including surgical and procedural kits, gloves and protective apparel used by hospitals and nursing homes worldwide.

The company was founded in 1966 by brothers James and Jon Mills. It traces its roots to a garment manufacturer, which initially made butcher's aprons for the meatpacking industry starting in 1910.

Medline went public in 1972, before being taken private again by the Mills brothers in 1977. Blackstone , Carlyle, and Hellman & Friedman together acquired the company in a $34 billion deal in 2021.

"The re-IPO is another step for a company which is really an amazing American growth story and where 'going public' has played a major role in funding growth," Schuster said.

Medline reported net income of $977 million for the nine months ended September 27, higher than $911 million a year earlier. Net sales were $20.6 billion, compared with $18.7 billion.

The company expects a $325 million to $375 million hit from tariffs in fiscal 2025 income before taxes and a $150 million to $200 million hit in fiscal 2026.

COMMITMENTS

Cornerstone investors have separately indicated their interest in buying up to $2.35 billion worth of shares from Medline's offering.

The roster includes Baillie Gifford, Capital Research Global Investors, Morgan Stanley's Counterpoint Global, Durable Capital Partners, WCM Investment Management, Janus Henderson Investors, GIC and Viking Global Investors.

Separately, members of the Mills family and their affiliates have indicated their interest in purchasing up to $250 million of Medline's shares in the offering.

Goldman Sachs, Morgan Stanley, BofA Securities and J.P. Morgan are the lead bookrunning managers for the offering.

Medline, which has tapped over 40 underwriters for the offering, will list on the Nasdaq under the trading symbol "MDLN".

(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Alan Barona and Maju Samuel)