Safety Firm UL Solutions’ Upsized IPO Raises $946 Million
(Bloomberg) -- UL Solutions Inc.’s initial public offering raised $946 million as the safety testing and inspection company expanded the size of the offering and priced the shares within a marketed range.
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UL Standards & Engagement, a nonprofit that was the company’s sole stockholder, sold 33.8 million shares for $28 each, according a statement. At the IPO price, UL Solutions has a market value of about $5.8 billion, based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.
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UL Solutions had marketed 28 million shares for $26 to $29 each. Norges Bank Investment Management, Norway’s $1.6 trillion wealth fund, indicated an interest in buying as much as $75 million in shares, according to the filings.
An IPO rebound appears to be gaining momentum after several false starts. With UL Solutions, companies have raised more than $11 billion in US IPOs this year, about three times the amount during the same period last year, according to data compiled by Bloomberg. Three companies launched sizable first-time share sales in the span of a week, led by Ibotta Inc. The Walmart Inc.-backed digital marketing firm’s IPO could raise as much as $472.5 million.
UL Solutions, based in Northbrook, Illinois, is the owner of the iconic UL-in-a-circle certification mark that appears on products around the world, the filings show. The company saw $276 million of net income on $2.7 billion of revenue in 2023, down from $309 million on $2.5 billion of revenue in the previous year. It reported a compound annual revenue growth rate of about 7% over the past 12 years, according to the filings.
The company traces its roots to 1894, when it was founded as part of the nonprofit Underwriters Electrical Bureau, the precursor to UL Research Institutes, which was reorganized into three units in 2021.
UL Solutions, the for-profit arm, has more than 15,000 employees and over 80,000 customers, including about 60% of the Fortune 500 and the Global 500, the filings show.
The offering is being led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The company plans for its shares to begin trading Friday on the New York Stock Exchange under the symbol ULS.
--With assistance from Ryan Gould.
(Updates with statement in second paragraph.)
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