Feb 24 (Reuters) – Medtronic’s MiniMed Group said on Tuesday it was aiming for a valuation of up to $7.86 billion in its initial public offering in the United States, advancing the medical device maker’s planned separation of its diabetes business.
Northridge, California-based MiniMed is seeking to raise up to $784 million in its IPO by offering 28 million shares priced between $25 and $28 apiece.
Medtronic said last year it planned to separate the diabetes business, its smallest segment by revenue, into a standalone company in order to simplify its portfolio and sharpen focus on high-margin growth markets.
The medical device maker has also carved out its kidney care portfolio through the Mozarc Medical joint venture in 2023 and exited the ventilator business in 2024 to streamline its operations.
Founded in 1983 by Alfred Mann, MiniMed makes products such as insulin pumps, glucose monitoring systems and sensors.
The unit, which primarily operates on a direct-to-consumer model, has contended with regulatory concerns over quality management and cybersecurity issues related to its certain devices in the last few years. It has, however, returned to growth in recent quarters helped by its 780G insulin pump and sensor improvements.
Becoming a standalone company will allow MiniMed attract more funding for growth, rather than competing for resources within Medtronic.
The separation comes nearly 25 years after Medtronic bought MiniMed in a nearly $3.3 billion deal. Medtronic is expected to carry out a subsequent split-off of MiniMed six months after the IPO.
Goldman Sachs, BofA Securities, Citigroup and Morgan Stanley are the active bookrunners. MiniMed aims to list on the Nasdaq under the symbol “MMED”.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
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