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UL Solutions Announces Pricing of Upsized Initial Public Offering

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UL Solutions Inc. announced the pricing of its upsized initial public offering of 33,800,000 shares of its Class A common stock at $28.00 per share. The offering consists of secondary shares to be sold by UL Standards & Engagement. The shares will trade on the NYSE under the ticker symbol 'ULS'.
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The announcement by UL Solutions Inc. regarding the pricing of its upsized initial public offering (IPO) is a significant event that merits a closer examination from a financial perspective. The decision to price 33,800,000 shares at $28.00 each indicates a substantial market valuation, reflective of investor confidence and the company's perceived growth potential. The offering being entirely secondary suggests that UL Standards & Engagement, the current sole stockholder, is capitalizing on the company's market position to liquidate part of its holdings.

Investors should note that UL Solutions will not benefit directly from the proceeds of this sale, as it is not offering any new shares. This could imply that the company is sufficiently capitalized and does not require additional funds for expansion or operations. However, the lack of direct capital infusion from the IPO could be a missed opportunity for accelerated growth. The underwriters' option to purchase additional shares could indicate a strong demand for the stock, potentially leading to a favorable market response upon listing.

The entry of UL Solutions into the public market with its shares trading under the ticker 'ULS' on the New York Stock Exchange is poised to attract significant attention from the investment community. The involvement of prominent financial institutions as bookrunners and co-managers, such as Goldman Sachs, J.P. Morgan and others, adds credibility to the offering and may enhance investor confidence.

Market participants will likely scrutinize the company's performance metrics, competitive positioning and future growth strategies post-IPO. The secondary nature of the offering may lead to a realignment of the shareholder base, which can have implications for corporate governance and future decision-making processes. In the broader context, the performance of UL Solutions' stock post-IPO could serve as a barometer for investor sentiment towards the industry and similar future offerings.

The legal aspects of this IPO are important for ensuring compliance with regulatory standards. The effectiveness of the registration statement by the U.S. Securities and Exchange Commission (SEC) is a mandatory step that permits the company to proceed with the offering. Potential investors should be aware that the final prospectus, once available, will provide essential details about the company's financial health, risk factors and management's discussion and analysis, which are pivotal for making informed investment decisions.

Furthermore, the statement that the offering will only be made by means of a prospectus is a standard regulatory disclaimer to prevent unlawful solicitation of sales. The announcement also adheres to the legal requirement of not accepting offers to buy before the registration statement becomes effective, ensuring that all transactions are conducted in accordance with securities laws.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- UL Solutions Inc. (“UL Solutions”) today announced the pricing of its upsized initial public offering of 33,800,000 shares of its Class A common stock at a public offering price of $28.00 per share. The offering consists entirely of secondary shares to be sold by UL Standards & Engagement, a nonprofit organization that is currently the sole stockholder of UL Solutions. The underwriters will have a 30-day option to purchase up to an additional 5,070,000 shares of Class A common stock from UL Standards & Engagement. UL Solutions is not offering any shares of its Class A common stock in the proposed offering and will not receive any proceeds from the proposed sale of the shares.

The shares are expected to begin trading on the New York Stock Exchange on April 12, 2024 under the ticker symbol “ULS.” The offering is expected to close on April 16, 2024, subject to customary closing conditions.

Goldman Sachs & Co. LLC and J.P. Morgan (in alphabetical order) are acting as lead managing bookrunners with BofA Securities acting as a managing bookrunner. Citigroup, Jefferies and UBS Investment Bank are acting as additional bookrunners for the proposed offering. Baird, Raymond James, Stifel, Wells Fargo Securities, William Blair, AmeriVet Securities, Bancroft Capital, Cabrera Capital Markets LLC, Loop Capital Markets and R. Seelaus & Co., LLC are acting as co-managers for the proposed offering.

The offering will be made only by means of a prospectus. When available, copies of the final prospectus relating to the offering may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, via telephone: (866) 471-2526, via fax: 212-902-9316, or via email: prospectus-ny@ny.email.gs.com and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com.

A registration statement on Form S-1 relating to the offering of these securities was declared effective by the U.S. Securities and Exchange Commission on April 11, 2024. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About UL Solutions

A global leader in applied safety science, UL Solutions transforms safety, security and sustainability challenges into opportunities for customers in more than 100 countries. UL Solutions delivers testing, inspection and certification services, together with software products and advisory offerings, that support our customers’ product innovation and business growth. The UL Mark serves as a recognized symbol of trust in our customers’ products and reflect an unwavering commitment to advancing our safety mission. We help our customers innovate, launch new products and services, navigate global markets and complex supply chains and grow sustainably and responsibly into the future.

Media:

Kathy Fieweger

Senior Vice President - Communications

Kathy.Fieweger@ul.com

312-852-5156

Source: UL Solutions Inc.

FAQ

What is the pricing of UL Solutions Inc.'s initial public offering?

UL Solutions Inc. priced its upsized initial public offering at $28.00 per share.

Who is selling the shares in the offering?

The shares in the offering are being sold by UL Standards & Engagement.

Under what ticker symbol will the shares trade on the New York Stock Exchange?

The shares will trade on the NYSE under the ticker symbol 'ULS'.

When is the expected closing date of the offering?

The offering is expected to close on April 16, 2024, subject to customary closing conditions.

Who are the lead managing bookrunners for the proposed offering?

Goldman Sachs & Co. and J.P. Morgan are acting as lead managing bookrunners.

UL Solutions Inc.

NYSE:ULS

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Services-testing Laboratories
United States of America
NORTHBROOK