Medline Inc.

Medline Inc. IPO - Plain English Investor Guide

Hey there! Thinking about Medline’s IPO? Let’s break it down like we’re chatting over coffee:

5. New Risks in the Fine Print 🔍

The latest filings reveal five big challenges:

1. Legal Headaches: They’re facing government investigations about how they work with doctors and promote products. Even if innocent, legal fights cost money.
   • 2023 Lawsuit Costs: $163M to settle lawsuits about cancer-linked chemicals (EtO).
   • 2025 Adjustments: $8M in legal fees.
2. Government Contract Roulette: 15% of their revenue comes from government deals that could disappear suddenly.
3. Diversity/Green Tightrope:
   • Required to use minority/women-owned suppliers for some contracts.
   • Must provide eco-friendly reports, but some states are banning “woke” policies.
4. Chemical Time Bombs:
   • Uses cancer-linked ethylene oxide (EtO) to sterilize medical gear. New regulations could force expensive upgrades.
   • “Forever chemicals” (PFAS) in products could lead to lawsuits.
5. Environmental Cleanup Surprises: Old pollution at facilities could trigger massive cleanup bills.

6. Who’s Really in Charge? 🎮

• Medline Inc. is a brand new company created in November 2024. The real business happens through Medline Holdings.
• Existing owners will swap their shares for new ones, but your Class A shares may have less voting power.
• After the IPO, existing owners keep a redacted percentage of the company (exact number not disclosed).

7. Financial Red Flags 🧮

• $1.5 Billion Golden Parachute: Execs got $1.5B in special payouts after a 2021 buyout. These payments cost the company $217M in 2023 and $277M in 2022.
• IPO Prep Costs: $8M spent preparing for the IPO.
• Currency Losses: Lost $82M on foreign exchange swings in 2025.

8. What You’re Actually Buying 🎟️

• Overpriced Shares: The IPO price is much higher than the company’s “book value” (like paying $100 for a $20 couch).
• Dilution Risk: They can create more shares anytime, reducing your ownership slice.
• Preferred Stock Threat: Big investors could get priority in payouts.
• Stock Swing Lawsuits: Share price drops (even normal ones) might trigger lawsuits.

The Bottom Line
Medline’s IPO has major red flags: legal risks, chemical liabilities, and financial quirks. The company didn’t disclose critical details like the exact IPO price, how much debt they’re paying off, or how much power retail investors truly have.

If you’re comfortable with high-risk bets and incomplete information, proceed cautiously. Otherwise, treat this like a “mystery box” investment – you might get a gem, or you might get a box of paperwork.

Not financial advice. Always do your own research! 😊

Note: Medline provided limited details in their filing. When companies skip key numbers, it’s worth asking: What aren’t they telling us?