UL Solutions IPOs - Rare Public Company Owned By A Non-Profit
Originally a non-profit, UL, formerly known as Underwriters Laboratories, now owns a publicly traded entity worth more than $5 billion in a rare case of a non-profit controlling a for-profit, raising various questions about the structure and future of the organization.
Today, April 12th, the company went public, allowing private individuals, including the organization’s executives, to be able to own stakes in the business. In this report, we examine the offering and its impacts.
For background, see UL - The Highly Profitable Quasi Nonprofit Investigated.
Executive *******
** ********* **** ** ** ********** the *** ** “******** *** ***** awareness, **** ******* ****** ** *******, expand *** ******* ** ******* *** retain ***-**** ****** *** ******** ********** applied ******** **** ****** ******* *********.”
*******, ********* ***** **********, *** ***-****** ** ********* **** not ****** *** ******* **** *** offering. *******, *** ** *** ********, totaling ******* $*** ******* ** $*** million, **** ** ** *** ********* owner,** ********* & **********, * ***(*)(*) ****** **** ******** standards ***********, ********, *** ********.
* ************ *** ** ********* ******** to ******* ** *** *** ******* to **** ** ***** *** ******** use ** *** *****, ****** *** "quiet ******" ****** *** ****.
*** *******'* ****** *** ******* *** possibility ** ******* ************, **** *** company ****** ******** **** ** ******** since ****.
***** ** ** *** ********* ******* for ********** — **** ** *********** institution ********* ***** ** ******* *********** — ** *** *********** ****** ** publicly ****** ******* *********, ** *** of * ***-****** ********** ***** ******** by * ***% ********* ***** ** rare. **** *** ****** ** **** another ******* ** **** ******** ***********.
** ** **** ******* *** ***-******* to ** *** **** ***** ** a ***-******. *** ******* ** *** late ********* ******'* ******'* *** ***.**** *******, ***** *** ******* ** a ********** ** *** ********** ******'* Own **********. ** ** ***** ***% owned ** *** ********** *** ** not ******** ******.
*** *** ******* * ****** ** complex ********* ** ***** *** ******** Underwriters ************, * ********* ****** ************ with * ***-**** *******, *** ***** into *** ***-****** *** ********* *****, and ****** **** *********** ** *** nonprofits. ********* ** ****, *** ***-****** UL ********* *********** ~$*.* ******* ** UL ********* & ********** *** ******** payments, ********* ** *** **********.
***** ** ****** ********* *** ************ the ***** ** *********, ******** ** funds, ** *** *** ******* *** organization’s ****** ******* **********, *** *** will ******* ** *********** ****** ** individuals ******** ****** ******* ** ******** – ******** **** ** **** ***** along **** ***** ******* ************. ********* to *** **********, ** ** *% of *** ****** ** *** ******** — ***** **** ** ******** ** dollars — **** **** ******** *** sale ** “**** ** ***, ** Standards & **********’* *** ** ******** Institutes’ *********, ******** *** *********.”
***** ****** **** ****** **** ************ to **’* ****** *******, **********, *** certification ********, ***** ** ****** **** worldwide *** ********* ****** ** * monopoly ** **** *******. ** ** example ** **** ********* ************, ** Solutions ********* ** *** ********** **** it ******* ***** ********** **** *** joint ******* ** *****, ***** ** noted *** “*** **** ****** ** a ***** ** ***.”
***** *** ********** *** ********** ** UL ******* *** *************, ******* ************ will ******* ** ********* *** *** public ** ***** ***** **** *********.
**********
** ** ***** *** *******, **********, and ********** ******** ** ****** **** meet ********** *********. *** ************ ******** billions ** ******** ********, ********* ******** materials *** ********** **********. ************ ********* can ** ****** *** ** ** is *** **-******, ********* ** *** specifications ** ***** *****.
***** ***** *** ***** ****** ******* organizations **** *** **** ********** ************, UL ** ********** * "**** ********."** **** *** * **** ******* — ****** **** ** *** Chicago *****'* **** ** **** **** its ******** ******* *** ****** **** to ******* ******** ******** *** **** hazards. **** ********* ******** ** * nonprofit, *** ************ ***** ************* ****** into ***-****** *** ***-****** ***** ** 2012.
****:
Details ** *** ********
*** ***** ** *** ******** ***** UL ********* ** * ******* ** $5.2 *******.
** ********* ****'* ************,*** *** **** ******* ** ******* shares ** ***** * ****** ***** with ** ******** ***** ** $**-$** per *****, *** * ***** ** $728 ******* ** $*** *******. *** stock ** ********* ** ***** ******* Friday ** *** *** **** ***** Exchange ***** *** ****** ****** "***."
**** ******* ***** *** ********* ** the ** ************ ***** *** ***. The ***-****** ****,** *********, ******* *** ************'* *******, **********, and ********** *********. ** ********* *** been ***% ***** ** ****(*)(*)*********,** ********* & **********, **** ***** as **** ***.**** ** **** ** ***** ** the ******** ************ ************ ***. ***(*)(*)*********, **** ***** **** ******** **********.
UL ********* *** ********
***** * ** ********* ******** ** comment ** **** ***** *** ***, citing ***"***** ******"****** *** *** **** ********* *** forbidden ***** *** *********** **** ********* their *****, *** *******'* ********** ******** a ****** **** ****** ***** *******(*************** ****) ********** *** ********.
*** ******** *** ********* *********** *** the ***:
**** **** ***, ** **** ******** UL ********* **heighten *** ***** *********, **** ******* ****** ** *******, ****** *** ******* ** ******* *** ****** ***-**** ****** and continue conducting applied research into safety threats worldwide. Our commercial activity on behalf of customers complements the ********** ******** *** *********-******* ********** ** *** ***** *** ******** ** *** ************ ************ **********: the nonprofits UL Standards & Engagement and UL Research Institutes. [Emphasis Added.]
*** **** ** *** ******,******** ** **** * ** *** prospectus, ********* ****-***** ****** ********** *** global ****** *** *******; *** *******, size, *** ******* ** ** *********; and *******'* ****** ********* ** ******, starting **** *** **** ** * teenaged ********* ********* ** *** *** Cross. ** ******* ******* ** *** IPO *** ********* ** *** ****.
*** ******: "** ** *********, ******* for * ***** ***** ** *** just *** ********, **’* *** *******. It ******* *** ****** ********* *******, enabled ** **** **** **,*** ********* around *** ***** **** ********* *********, serving **** **,*** ********* ****** **** than *** ********* ** ****."
Distribution ** ********
******* *******'* ****** **** *** *** will **** ** ********* "******* ****** to *******," **** ** *** ***** raised ******* *** ******** **** ** going ** *** ********. *******, *** of *** ******** **** ** ** UL ********* & **********, *** "**** stockholder ***** ** **** ********," ********* to *** **********. *** ******** ******* states:
**** ** *** ******* ****** ******** of ****** ** ***** * ****** stock **UL ********* ***. **** ***. (“** ********* & **********”), *** **** *********** ***** ** **** ********, is selling 28,000,000 shares of our Class A common stock. We **** *** ** ******* *** ****** ** **** ******** *** ** **** *** ******* *** ******** from the sale of shares of our Class A common stock offered by the selling stockholder. [Emphasis Added.]
*******, ** *** ******, ** ********* could *** ***** * ******** ****** company ** ***** *******.
Conflict ** ******** *******
** ********* & ********** **** ****** at ***** **% ** *** ********* in ** ********* *** **.*% ** the ****** *****, ******** **** *** nonprofit ******* ******* **** *** ********. It **** **** ****** *********** ********* over ********* ********** *******.
*** ********** ******** ******** ** ********* that ** ********* & ********** **** continue ****** ********-****** ***** **** *** company, ********* *********** *********** * **** for *** *** ********* ***** *** interests ** ***** *********. ** ****** in *** ********:
** ********* & ********** *** ****** to ****** **** **** ************ ** raise ******** ** ** **** ** furtherance ** *** ****** ****** ********** mission **because ** ********* & ********** ********** * **** *********** ** ********* ** *** **** *********....Additionally, if UL Standards & Engagement privately sells its significant equity interest in our Company, we may become subject to the control of a presently unknown third party. Such ***** ***** *** **** ********* ** ********. [Emphasis Added.]
5% ** ****** ********
** *********** ****** ** *********, ********, trustees, *** ********* ** *** ** the ** ******** *** ** ******** to ******** * ***** ** ** least $** ******* ***** ** *** stock **** ******* *** ***, ********* to *** **********. ************, *** ******** states:
** *** *******,the ************ **** ******** *** ****, ** *** ******* ****** ******** *****, ** ** *% ** *** ****** offered by this prospectus for sale to some of our, UL Standards & Engagement’s and UL Research Institutes’ (as defined herein) respectivedirectors, ********, ******** *** *********. [Emphasis Added.]
******* ***** ****** **** ** **** sharply ** *** *** ** ** IPO (*** ******* **** ******** *********), anyone *** ********* ******** ****** ** the ******** ***** **** ****** ** able ** ******* *********** *****-**** *******.
Cornerstone ********
*** ********** ********** ********* ******** ****, ******'* ******* ****, *** ******** up ** $** ******* ** *** IPO, ********* ** *** **********. *** investment ********** ********* ** *** **** is ********* ** *** ******** ** a "*********** ********." ** *** ********* interest ** *** ******** *** *** not ******* **** * ******* *********, according ** *** **********.
****** **** ********** **********'* ******** ** a ***** ***** ** ****** ** the *** *** **** ******** *** price ** * *****-**** *****.
UL ********* ********
*** ********** ******** ******* **** *** workings ** ** *********' *******, **********, and ************* ******** ("***") **** *** not ********** ********** * ********, ************* basis ******* ** ********* *** * private *******.
** *********' ******* *** ~$*.* ******* in ****, ** ~*.*% **** *** prior ****. ***** ****, *** ******* has *** * **** ** *.*%, according ** *** **********.
*** ******* ****** *** ******* **** two **********: *******, ********** *** ************* ("TIC") *** ******** *** ******** ******** ("S&A"). *** *** ******** ********* ********** and ******** ********. *** *&* ******** is * "****** ******** ** ********, data *** ******** *********" ******* **** regulatory, ****** *****, *** ************** ******. The ********** *****:
** *** ****** ******* ********* ** evolve *** ******* **** ******* *** inter-connected, *** ********* ******** ** **** ways ** ****** *********** *** ***** withnext ********** *****-***** ******** *** ******** ** ****** ******** **** and enhance their business performance. We believe that our complementary *** *** *&* ********* ******** ** ** ********** ** **** ****** **** and better serve our customers, of which we had more than 80,000 in 2023. [Emphasis Added.]
Total ******* *** *********** ****** **** ** *******:
- ************* *******: **%
- ******* *************: **%
- ***-************* ******* *** ***** ********: **%
- ********: **%
99% ******** ********* ****
************* *** *******'* ****** *****, ** Solutions ********* **** ** ** ****, it "******** ** ************* **% ******** retention **** ******* *** *** ******* customer ******** **** **** ** ****, 2020, **** *** ****."
Lower *** ******
******* ************ ***-**** ****** **** **** to ****, *** ****** ******* ****** 11% **** **** ****** **** $*** million ** $*** *******. **** **** time, ** ********* **** ****** * 6.5% ******** ** *** **** ** revenue; * **% ******** ** *******, general, *** ************** ********; *** * $37 ******* ******** ********** ********* **** "lower **** ******** ****** *** ***-************* Testing *** ***** ******** ** *** mobility ********".
*** ******* **** *** ******** ******** has **** "******** ** **** ******** conditions ** ****, ********* ******* ** the **** ** ******** ******* **********, labor *************, *** *** ****** ** more ******** ****** ************ *** *** business."
*********
** *** ****, ** ********* *** paid ~$*.* ******* ** *********, ********* special *********, ** *** **** ***********, UL ********* & **********.
*** ******* ******** ******** *** ********* as *******:
** ********** **** *** **************, ** December **** *** ******* ****, ** paidspecial **** ********* ** ** ********* & ********** of $200 million and $1.6 billion, respectively. In December 2023, we paid another special cash dividend to UL Standards & Engagement of $600 million. [Emphasis Added.]
******* ******** ******** *** ********* ** follows.
** ***** ****** ********* ********* ** UL ********* & **********, ** *** sole ***********, ** **** ** *** amount **$20 ******* **** *******. Beginning in 2024, we increased the regular quarterly dividend to **.* ***** *** *****, resulting in a $25 million dividend in the first quarter, which we paid in March 2024...[Emphasis Added.]
China ***** *******
** ********* **** ********** ******** ** China, ***** ** *** * **% interest ** * ***** *******, **-**** Company *******. *** ********** ********* ***** associated **** *** ******* ***** *******, which ** **** ******* **** ** a ******-** ****.
Market ****** ************
** ********* ********* **** **'* *** single ******* ******** ** *** ********** testing, ********** *** ************* ******** ** market *****, ****** **** *** ****** is "************* ** * ****** ********** competitive *********, **** **** * ******* of ****** ****** ************ ********** ****** capabilities *** *****."
** ****, ** ********* * ***** outsourced *** ****** ** $** *******, with ** ********* ******* * *% share. ** *********** * **** ** at ***** *% ******* ****, ******* the ***** ****** **** ** ~$** billion.
Acquisitions ********
***** *** ***** *****, ****** ********, and ******* *****, ** ********* *********** it **** **** ** ***** ** the **** ** *** **** ** the ******. ** ********* **** *********** building *** ******** *** ****** ***** through ************. ***** ****, ** *** deployed $*.* ******* ** ******* *** integrate ** *********.
**********
***** ** ** *** ****** ** the ********** *** ** ********* ************ will ******* **** ***** ******, *** IPO **** ******* ******** ** *** entire ** ************, ********* ********* ***** to * ********* **** ******** ********* research, ****** ********, *** ********. ******* investors **** **** ** **** ** share ** *** *******, **********, *** certification ********'* *******.
***** ***** ** ********* *** ********* of ******** ** *** ****, *** public **** **** ******* **** *** IPO ******* ** ********* **** ** compelled ** ******* ********* ************ **** its ********** ***** ******* ** ****** regular ********* ********** **** *** *.*. Securities *** ******** **********. **********, ******* of *** ****** *** ** *********' customers ***** *** ******* ******* *** company's ********, ********* *** *******, *******, and ********.
**'* ***** ****** ** *** ***** day ** *******:
** ***** ****** ****** **** *****? that's *** **** *** ** ********* if ** **** ** * ********** stock.