UL Solutions has completed an initial public offering
As a result of UL Solutions’s IPO US$946 million was raised. During the IPO, the company increased the number of securities traded in response to solid demand. The company had originally planned to raise US$812 million. Goldman Sachs and JPMorgan managed the listing on the New York Stock Exchange.
The US company deals with security issues, certification and analysis of systems. Prior to the IPO, the company’s sole shareholder was UL Standards & Engagement, a non-profit organisation that is part of the company’s structure.
In total, nearly 34 million shares were issued to the market, each worth US$28. After the IPO, experts estimated the company’s market value at nearly US$6 billion. This amount corresponds to the number of shares declared by UL Solutions to the US Securities and Exchange Commission.
According to official data, the company’s performance amounted to:
– profit after tax and fees in 2023 were US$276 million;
– revenue in 2023 was US$2.7 billion;
– profit after deductions in 2022 was US$309 million;
– revenue in 2022 was US$2.5 billion.
According to the company, annualised revenue growth over 12 years was approximately 7%.
UL’s IPO was one of many on the US stock market. Since the beginning of 2024, there has been a rush of big companies. Reddit, Rubrik and Astera Labs are among those planning or having completed IPOs.
Business overview
UL Solutions provides testing and licensing services for software products. It also develops consulting offerings for clients to improve the security of their software. The UL certification mark is an authoritative mark of quality, and not just for software. The company evaluates the safety level of various systems, including electrical and fire protection systems.
UL Solutions has two divisions:
– TIC: product testing, inspection and certification;
– S&A: software verification and consulting.
Based on 2023 figures, the company served more than 80,000 customers, with approximately 70% of them using the services of both businesses.
Most of UL’s revenue comes from the TIC sector, namely certification. Experts estimate that this part of the business accounts for 7% of the total market.
UL Solutions’ services are in high demand due to the development of new technologies and the increase in safety standards. The company has also been active in developing new approaches to evaluating innovative software products.
