Medline Surges 21% After Raising $6.26 Billion in IPO

Watch Medline Surges 21% After Raising $6.26 Billion in IPO - Bloomberg on Dailymotion

Transcript

00:00We want to bring in Bailey Lipschelz for more. He's been watching Medline since it went public

00:03here. Medical, not so much device maker, but medical supply maker. Think gloves, gowns,

00:08and masks. Bailey is Bloomberg Equities reporter live in New York. Says a lot to be this popular

00:15on a tough day on the markets like this, doesn't it?

00:18It does. And it also says a lot when you're an IPO that with the green shoe being potentially

00:23exercised, you get close to $7 billion. So the biggest US IPO since Rivian, as you mentioned,

00:29up close to 30%, I would say for all intents and purposes, this has been a far better success

00:35in day one than I think even the sponsors who backed this company would have expected.

00:40Pretty remarkable considering the fact that I don't think there's any tie into AI here,

00:44Bailey, unless I'm wrong. This is a company that makes old fashioned stuff. And I guess

00:48maybe it's appropriate or on brand for this market right now for

00:52investors to be chasing an actual profitable company with a track record.

00:56No, certainly. And we've seen that play out really in the last few months. If you look at

01:01their leaders in the S&P 500, we've seen investors rotating to healthcare companies and more defensive

01:06plays. And when we caught up with Medline CEO this morning, he painted a vision that they should be

01:12compared to Costco. And at first you say, I don't know how a healthcare company is going to be related

01:16to Costco, but their vision is they have a private brand. Kirkland obviously has their,

01:21or excuse me, Costco has their Kirkland brand. Medline is really touting their ability

01:25to own their supply chain and do a number of their logistics in-house. So when you think about it,

01:31it's not your typical supply chain company because they produce so many goods. They have over 300,000

01:36products that they distribute and they are a key player within the healthcare space. So

01:41if you look at kind of the fundamentals talking to investors, this is what people want to see more

01:45of as opposed to excitement around what AI could bring five years from now.