Temperature-controlled storage and logistics giant Lineage Inc. raised about $4.4 billion in an enlarged initial public offering, landing the year’s biggest first-time share sale. Novi, Michigan-based Lineage sold nearly 57 million shares Wednesday for $78 each, near the top of the price range, according to a statement confirming an earlier report by Bloomberg News. The company had marketed 47 million shares for $70 to $82 apiece. With the upsize, Lineage has a market value of about $19 billion, based on the number of outstanding shares in its filings with the US Securities and Exchange Commission. The Bay Grove Capital-backed REIT’s IPO is the largest in the US since ARM Holdings Plc’s offering in September, 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 US exchanges in July, data compiled by Bloomberg show. Read More: IPOs Finally Bring Summer Heat With $5.5 Billion in Deals on Tap Norway’s $1.7 trillion sovereign wealth fund has indicated an interest in buying as much as $900 million worth of Lineage shares at the IPO price, according to the filings.
Lineage’s listing is good news for the 20 underwriters and other financial institutions named in its filings. US IPO volume has recovered this year from a relatively quiet period, with companies raising more than $22 billion according to data compiled by Bloomberg. That’s nearly two-thirds higher than the corresponding period last year, but below the average in the decade before the pandemic, the data show.
Other companies that have launched US first-time share sales this week include KKR & Co.-backed software company OneStream Inc., whose IPO raised about $490 million on Tuesday. Read More: KKR-Backed OneStream Shares Climb 34% After $490 Million IPO Lineage, led by Chief Executive Officer Greg Lehmkuhl, had 482 warehouses in 19 countries with 3 billion cubic feet of capacity as of March 31, the filings show. Bay Grove will continue to have a majority of the voting power following the IPO. 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 filings. 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 is expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol LINE.
