Cold Storage REIT Lineage Launches IPO at $19B Valuation

Lineage Inc., a cold storage REIT, has announced the pricing of its initial public offering, valuing the company at around $19 billion. The offering consists of 47 million shares of common stock and a usual 30-day, 15% option (for an additional 7.05 million shares) to the deal underwriters. The company’s stock will trade on the Nasdaq under the ticker “LINE.” The price range was set between $70 and $82 per share.

Net proceeds of $3.4 billion to $3.9 billion (if deal underwriters exercise the option) will be used to retire debt, fund cash grants to select workers and cover transaction costs. Any surplus proceeds will be utilized to cover regular corporate expenses or invested in short-term securities.

Novi, MI-based Lineage claims to be the world’s largest global temperature-controlled warehouse REIT, managing 482 facilities with 3 billion cubic feet of space across North America, Europe and the Asia-Pacific region. Nearly two-thirds of the facilities are in North America. In addition to being a landlord, it offers freight forwarding, customs brokerage, drayage and truck transportation.

Lineage, backed by private equity firm Bay Grove, has raised more than $13 billion in financing since its start in 2008. For the fiscal year ending March 31, the company earned $5.3 billion in revenue, $1.8 billion in net operating income and $1.3 billion in adjusted EBITDA.

Morgan Stanley, Goldman Sachs, BofA Securities, J.P. Morgan and Wells Fargo were named as lead book-runners on the transaction, which involved 28 investment banks.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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