MiniMed (MMED.O), Medtronic’s diabetes business, experienced a rocky start on the Nasdaq, with shares opening 4.8% below their offer price on Friday. The debut valued the company at $5.35 billion, as market volatility continues to impact new listings. MiniMed was founded in 1983 with a goal to make diabetes care wearable and consumer-focused. Medtronic acquired the business almost 25 years ago.
The IPO market has faced headwinds in recent months due to concerns about AI disruption and uncertainty surrounding conflicts in the Middle East, which have dampened investor enthusiasm for new listings. Wall Street’s CBOE Volatility Index (.VIX), a key measure of investor anxiety, reached a four-month high on Friday following a weak jobs report, further impacting market sentiment. MiniMed manufactures insulin pumps, glucose monitoring systems and sensors for both type 1 and type 2 diabetes.
Despite the challenging market conditions, MiniMed proceeded with its IPO, raising $560 million by selling 28 million shares at $20 each, below the initially marketed range of $25 to $28. IPOX Research Associate Lukas Muehlbauer noted that MiniMed’s IPO “shows that the U.S. IPO market is still open, but that it has become a price-sensitive buyers’ market.”
MiniMed CEO Que Dallara told Reuters, “I don’t think about the business as being a turnaround anymore. We’re really at the point of acceleration.” The company intends to launch its MiniMed Go smart multiple daily injection system in the US in the spring.