March 6 (Reuters) - Medtronic's diabetes business MiniMed fetched a $5.35 billion valuation after its shares opened 4.8% below the offer price in their Nasdaq debut on Friday, as heightened market volatility continues to roil the new listings market.
The IPO market has been navigating challenges over the past month amid concerns around AI disruption and uncertainty linked to the conflict in the Middle East, damping investor appetite for new listings and hindering deal flow.
Wall Street's most-watched
gauge of investor anxiety, the CBOE Volatility Index also spiked to a four-month high on Friday as a weak jobs report further weighed on sentiment.
Northridge, California-based MiniMed's stock opened at $19.05 each, compared with the $20 offer price. The firm sold 28 million shares below the marketed range of $25 to $28 apiece to raise $560 million.
Some analysts had also questioned the valuation MiniMed was initially seeking in the IPO.
MiniMed, which competes against the likes of Beta Bionics, Dexcom, Insulet and Tandem Diabetes Care, was founded in 1983 by Alfred E. Mann with a goal to make diabetes care wearable and consumer-focused.
The company makes products such as insulin pumps, glucose monitoring systems and sensors for type 1 and type 2 diabetes.
The business has returned to growth in recent quarters after addressing regulatory concerns over quality management and cybersecurity issues related to certain devices in previous years.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore)
