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UL Solutions valued at $6.8 billion in strong debut on NYSE

Pratik Jain and Manya Saini
·2 min read

By Pratik Jain and Manya Saini

(Reuters) -Shares of UL Solutions climbed 21% in their market debut on the New York Stock Exchange on Friday, valuing the safety testing company at $6.8 billion.

The company's shares opened at $34 apiece, above their initial public offering (IPO) price of $28, which was at the higher end of its targeted range.

UL Solutions' parent non-profit UL Standards & Engagement (ULSE) raised $946.4 million in the IPO after selling 33.8 million shares.

The strong showing from the company follows the successful debut of PACS Group on Thursday, valuing the healthcare firm at $4 billion, a sign that U.S. initial public offerings are on the road to recovery.

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The IPO market is seeing a rebound in activity in 2024, after a dry spell of almost two years as high interest rates, market volatility, and geopolitical turmoil weighed on investors' risk appetite.

UL Solutions is a third party certification company, it certifies a variety of technology solutions including electric vehicle chargers and liquid cooling systems using in data center servers.

"We are really excited about the growth opportunities represented from ensuring the safety, security and sustainability of both industrial products and consumer products," UL Solutions CEO Jennifer Scanlon told Reuters.

Increasing regulatory requirements and higher standards by international agencies in recent years have fueled the demand for products of safety certifications as corporate giants ramp up investments.

The debut also bodes well for other comapnies waiting to launch their offerings. Walmart-backed technology firm Ibotta, Southwest Gas Holdings unit Centuri and travel firm Viking Holdings have made forward steps in their listing process this month.

For 2023, UL Solutions' annual revenue was $2.68 billion, compared with $2.52 billion a year earlier.

Goldman Sachs and J.P. Morgan are the lead underwriters of the offering.

(Reporting by Sriparna Roy, Manya Saini and Pratik Jain in Bengaluru; Additional reporting by Akash Sriram; Editing by Shailesh Kuber and Krishna Chandra Eluri)