This story has been updated.
Temperature-controlled logistics real estate investment trust Lineage Inc. said nearly 57 million shares of its common stock were priced at $78 per share ahead of its initial public offering on Thursday. The deal will haul in roughly $4.4 billion in proceeds, better than the $3.4 billion to $3.9 billion range previously expected.
A 30-day option for a 15% allotment (a little more than 8.5 million shares) has been granted to underwriters. The company said it will use proceeds to repay debt, fund cash grants to certain employees and pay transaction expenses. Any additional proceeds will be used for general corporate expenses or to repay other outstanding debt.
The Novi, Michigan-based cold storage warehouse operator is backed by private equity firm Bay Grove. Since its 2008 inception, Lineage had raised more than $13 billion in capital prior to the IPO. The transaction will value the company at approximately $19 billion.
Lineage manages 482 locations with 3 billion cubic feet of space across North America, Europe and the Asia-Pacific region. It also provides freight forwarding, customs brokerage, drayage and truck transportation.
For the 12 months ended March 31, it generated $5.3 billion in revenue, $1.8 billion in net operating income and $1.3 billion in adjusted earnings before interest, taxes, depreciation and amortization.
The deal was originally expected to include 47 million shares with a customary 15% option, but demand drove the need for the increase in deal size. The initial price range was $70 to $82 per share.
Morgan Stanley, Goldman Sachs, BofA Securities, J.P. Morgan and Wells Fargo were listed as lead book-runners on the deal, which included a total of 28 investment banks.
Shares of Lineage debuted on the Nasdaq under the ticker “LINE” on Thursday at $82 per share.
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The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
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