UL Solutions, which provides product testing, inspection, and certification services and related software, announced terms for its IPO on Tuesday.
The Northbrook, IL-based company plans to raise $770 million by offering 28 million shares (100% secondary) at a price range of $26 to $29. A cornerstone investor intends to purchase $75 million worth of shares in the offering (10% of the deal). At the midpoint of the proposed range, UL Solutions would command a fully diluted market value of $5.6 billion.
UL Solutions is a global safety science company that provides independent testing, inspection, and certification (TIC) services and related software and advisory (S&A) offerings. Its TIC business (87% of 2023 revenue) is made up of two segments, Industrial and Consumer, which provide comprehensive services to customers across a broad array of end markets. Its S&A business (13%) enables customers to manage complex regulatory requirements, deliver supply chain transparency, and operationalize sustainability. UL Solutions states that it is the largest TIC services provider headquartered in North America by revenue, serving over 80,000 customers across more than 110 countries in 2023.
UL Solutions was founded in 1894 and booked $2.7 billion in revenue for the 12 months ended December 31, 2023. It plans to list on the NYSE under the symbol ULS. Goldman Sachs, J.P. Morgan, BofA Securities, Citi, Jefferies, and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price during the week of April 8, 2024.
