Global cold storage and logistics company Lineage has announced more details of its underwritten initial public offering (IPO), revealing its goal of raising up to USD 3.85 billion (EUR 3.54 billion).
Rumors of a potential Lineage IPO began in September 2023 after Bloomberg reported the company had tapped advisors in preparation for the offering. Lineage later confirmed the rumors by filing a registration form with the U.S. Securities and Exchange Commission (SEC) to sell shares of its common stock.
Bloomberg then revealed more details on 16 July, leading the company to make a public announcement the same day it had begun the roadshow for its IPO, offering 47 million shares of its common stock. The underwriters of the IPO will also have a 30-day option to purchase up to 7.05 million shares at the IPO price.
Lineage said that it is expecting to garner between USD 70 and USD 82 (EUR 64 and EUR 75) per share. Bloomberg reported that based on its calculations, the company could have a market value of about USD 19.2 billion (EUR 17.6 billion).
“The company expects that its common stock will be approved for listing, subject to notice of issuance, on the Nasdaq Global Select Market under the ticker symbol ‘LINE,’” Lineage said.
The company said that it plans to use the proceeds from its IPO to repay borrowings outstanding under its delayed draw term loan, repay borrowings from its revolving credit facility, and fund cash grants to some of its employees.
“Following such uses, the company expects to use the remaining net proceeds for general corporate purposes, which may include the repayment of additional borrowings outstanding under its revolving credit facility,” Lineage said.
The company submitted its first registration statement to the U.S. Securities and Exchange Commission (SEC) on 26 June and an amended registration statement on 22 July.
Lineage’s SEC filings revealed that it has 463 warehouses comprising 2.91 billion cubic feet of storage space. Those warehouses are spread across three regions, with 293 in North America, comprising 70.5 percent of the company’s total storage space; 82 in Europe, comprising 21.1 percent of its storage space; and 88 in the Asia-Pacific region, making up 8.4 percent of its storage space.
Lineage’s filings also revealed its financial data.
The company had revenues of USD 5.34 billion (EUR 4.98 billion) in FY2023, up from USD 4.93 billion (EUR 4.60 billion) in 2022, and its net income in FY2023 was a loss of USD 96.2 million (EUR 87.8 million), marking a drop from a loss of USD 76 million (EUR 71 million) in FY2022.
