Medtronic’s (MDT) diabetes care subsidiary, MiniMed Group, has officially kicked off its IPO roadshow in a bid to list as an independent company on the Nasdaq. About 28 million shares of the common stock will be offered to the public at an expected price range of $25 to $28 per share. The company will trade under the ticker MMED.
Medtronic will still hold somewhere between 89% and 90% of the company post-IPO. The funds generated through the IPO will be utilized to strengthen the balance sheet as well as pay for some general expenses. More importantly for investors, the public offering will allow investors to value Medtronic’s diabetes portfolio and the rest of the business separately rather than as a single entity. This could potentially unlock a better valuation in the future. While the IPO doesn’t drastically change anything for the company in the short term, it is part of a multi-year transformation that will eventually help the company increase its focus on the higher-margin parts of the business.
