MiniMed Group Inc., the diabetes management device maker being spun off from Medtronic Plc, is seeking to raise up to $784 million in an IPO that has divided Wall Street. The Northridge, California-based company plans to expand its insulin pump and glucose monitoring portfolio globally, with shares priced between $25 and $28.

Despite being marketed at a discount to peers, the offering has attracted price-sensitive orders at the lower end of the range. Analysts are split on whether MiniMed's growth prospects justify its $7.4 billion market cap target. JPMorgan's Robbie Marcus argues the company should be valued at $2 billion to $3 billion, citing ongoing losses and competitive pressures.

MiniMed's core MiniMed 780G system includes an automated pump that adjusts insulin delivery using continuous glucose monitor sensors. The company posted a $21 million net loss on $1.5 billion revenue for the six months ended October 24. Baird analyst Jeff Johnson counters that the $25-$28 price range is reasonable, putting valuation at 2.2 to 2.5 times enterprise value to last-12-months revenue.