A secondary share sale of Medline Inc. executed by affiliates of Blackstone Inc., Hellman & Friedman LLC and the Abu Dhabi Investment Authority attracted demand several times greater than the shares on offer after the deal size was increased late in the process, according to reporting Friday.
The transaction ultimately comprised 72.6 million shares offered by holders, with the shares priced at $37 each. That price represented a 1.9% discount to the stock's close on Tuesday of $37.70, which was the last closing price before the offering was announced early Wednesday.
Sources familiar with the matter said the distribution of shares was markedly skewed toward long-only investors. The 10 largest allocations accounted for 55% of the shares, while the top 25 investors received 75% of the placement, reflecting a concentrated investor base for the secondary sale.
Major investment banks acted as underwriters on the deal. The firms involved included Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp. and JPMorgan Chase & Co.
Key transaction details are as follows:
- Offering size: 72.6 million shares
- Offer price: $37 per share
- Pricing vs. prior close: 1.9% discount to Tuesday's close of $37.70
- Investor concentration: top 10 investors took 55%, top 25 took 75%
The reported oversubscription came after a late decision to raise the size of the offering, prompting demand that exceeded available shares by multiple times. That dynamic, coupled with the concentration of allocations among a limited number of long-only investors, was highlighted by people familiar with the placement.
No additional commentary or forward-looking statements from participating firms or the selling affiliates were included in the reporting. The description of the transaction and the allocation breakdowns were attributed to individuals with direct knowledge of the offering process.