Lineage, the most extensive temperature-controlled warehouse real estate investment trust (REIT) globally, surged by as much as 5% in its Nasdaq Stock Market debut on Thursday, following its initial public offering under the ticker symbol “LINE.”
Lineage priced 57 million shares at $78 each on Wednesday, close to the upper end of its initial $70 to $82 target range. The company raised $4.4 billion at an implied valuation over $18 billion, marking it the most substantial public offering since semiconductor designer Arm’s $4.8 billion listing last September, and more than double the magnitude of cruise operator Viking Holdings, which went public in May.
Lineage is a four-time top Disruptor 50 company that ranked No. 46 on this year’s list.
One of the most significant drivers of the corporation’s success is its assertive acquisition strategy.
“We initiated with one warehouse and have executed 116 acquisitions to transform Lineage into its present state,” co-founder and co-executive chairman Adam Forste remarked on good’s “Squawk Box” Thursday morning before shares commenced trading.
In the past year alone, Lineage has procured Grupo Fuentes, Burris Logistics, Kennedy Transportation, and Harnes. The Burris acquisition alone provided Lineage with eight new facilities.
“Numerous families from whom we have acquired companies have integrated equity into Lineage as part of their transaction, so they are also celebrating here with us today,” Forste stated, detailing that the company’s name is derived from the network, or ancestry, of family-owned warehouses that he and co-founder Kevin Marchetti have amalgamated.
Lineage has amassed over 480 facilities, totaling approximately 2.9 billion cubic feet of capacity across regions in North America, Europe, and the Asia-Pacific realm. These sites establish a worldwide network of cold-storage facilities, curbing supply chain food wastage and its ecological footprint.
Food wastage occurs at all supply chain stages, with an estimated $600 billion value of food going to waste during or immediately after harvesting. This increasing volume of waste presently contributes to about 11% of global emissions – labeling it as one of the primary environmental problems fueling climate change.
Morgan Stanley, Goldman Sachs, Bank of America, J.P. Morgan, and Wells Fargo served as the principal underwriters for Lineage’s offering.
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