(Bloomberg) — Shares of UL Solutions Inc. rose as much as 23% after the safety testing and inspection company's expanded initial public offering raised $946 million, as the nascent recovery in listings continues to strengthen.
Shares of the Northbrook, Illinois-based company rose to $33.41 apiece as of 1:15 p.m. in New York on Friday. UL Standards & Engagement, a nonprofit organization that was the company's sole shareholder, increased the size of its IPO to 33.8 million shares on Thursday, according to a statement. UL Solutions has a market value of approximately $6.9 billion.
Read more: The US IPO appears to be in full swing in the second quarter
UL Solutions had marketed 28 million shares at $26 to $29 each. Norges Bank Investment Management, Norway's $1.6 trillion wealth fund, expressed interest in buying up to $75 million worth of shares, according to filings.
“We felt like we were the type of company that should be out there early as markets opened up,” Jennifer Scanlon, president and CEO of UL Solutions, told Bloomberg News. “We didn't want to wait any longer than we needed to for a ready market,” she said by phone, citing the company's history and balance sheet.
After several false starts, the IPO recovery appears to be gaining momentum. UL Solutions companies have raised more than $11 billion in U.S. initial public offerings this year, about three times more than in the same period last year, according to data compiled by Bloomberg. Three companies launched major stock sales for the first time in a week, led by Ibotta Inc. The Walmart Inc.-backed digital marketing company's initial public offering could raise as much as $472.5 million.
UL Solutions, based in Northbrook, Illinois, owns the iconic UL in a Circle certification mark that appears on products around the world, filings show.
“Innovation drives our business growth and there should be no new products coming to market that are unsafe,” Scanlon said. “Our internal growth rates are exciting and meet our expectations across our industrial products testing business, our consumer products testing business and our software consulting business.”
UL Solutions had net income of $276 million on revenue of $2.7 billion in 2023, compared to $309 million on revenue of $2.5 billion a year earlier. According to the filings, it reported a compound annual sales growth rate of about 7% over the past 12 years.
The company's roots date back to 1894, when it was founded as part of the nonprofit Underwriters Electrical Bureau, the precursor to the UL Research Institutes, which was reorganized into three entities in 2021.
UL Solutions, the for-profit arm, has more than 15,000 employees and more than 80,000 customers, including about 60% of the Fortune 500 and Global 500, filings show.
The offering was led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The shares trade on the New York Stock Exchange under the symbol ULS.
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