Cold Storage Firm Lineage Seeks Up to $3.85 Billion in IPO
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Temperature-controlled storage and logistics giant Lineage Inc. is seeking to raise as much as $3.85 billion in its initial public offering.
Novi, Mich.-based Lineage is offering 47 million shares for $70 to $82 each, according to a filing with the U.S. Securities and Exchange Commission confirming an earlier Bloomberg News report. The listing could give the real estate investment trust a market value of about $19.2 billion, according to Bloomberg calculations.
Lineage ranks No. 15 on the Transport Topics Top 100 list of the largest logistics companies in North America, and No. 1 on the refrigerated warehousing sector list.
The Bay Grove Capital-backed REIT’s proposed debut would be one of the largest in the U.S. since ARM Holdings Plc, and a rare sizable listing in the summer months. Aside from a handful in 2020 and 2021 when the pandemic disrupted travel, only three companies in the past decade raised more than $1 billion on U.S. exchanges in July, data compiled by Bloomberg shows.
Lehmkuhl
Norway’s $1.7 trillion wealth fund has indicated an interest in buying as much as $900 million worth of shares at the IPO price, according to the filing.
Lineage’s listing is good news for the 20 underwriters and other financial institutions named in its filings. U.S. IPO volume recovered in the first six months of this year from a relatively quiet period, with companies raising more than $21 billion. That’s the best start to a year since 2021, but well below the average in the decade before the pandemic, the data shows.
Other companies that have launched U.S. first-time share sales this week include KKR & Co.’s software company OneStream Inc., which could have a market value of as much as $4.4 billion in an IPO, Bloomberg News has reported.
Lineage, led by CEO Greg Lehmkuhl, has 482 warehouses with 3 billion cubic feet of capacity as of March 31, the filing shows. Bay Grove will continue to have a majority of the voting power following the IPO.
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The company had a historical net loss of $96.2 million on revenue of $5.3 billion in 2023, compared with a net loss of $76 million on revenue of $4.9 billion a year earlier, according to the filing.
Lineage is expected to price the offering after the market close on July 24, according to terms of the offering seen by Bloomberg News.
The joint bookrunning managers include Morgan Stanley, Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. KKR is its lead financial adviser. Lineage plans for its shares to trade on the Nasdaq Global Select Market under the symbol LINE.
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