Logistics Giant Lineage Inc Sets Record With Year's Largest IPO, Raising $4.4B

In what is being hailed as the largest initial public offering (IPO) of the year, temperature-controlled storage and logistics giant, Lineage Inc., has successfully raised around $4.4 billion.

What Happened: Lineage Inc. sold nearly 57 million shares on Wednesday for $78 each, close to the top of the price range, Bloomberg reported on Thursday. The Michigan-based company had initially marketed 47 million shares for $70 to $82 each.

Following the upsize, Lineage’s market value now stands at about $19 billion, based on the number of outstanding shares in its filings with the U.S. Securities and Exchange Commission. The IPO is the largest in the U.S. since ARM Holdings Plc’s offering in September.

Norway’s $1.7 trillion sovereign wealth fund has expressed interest in purchasing up to $900 million worth of Lineage shares at the IPO price, according to the filings.

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The listing is a positive development for the 20 underwriters and other financial institutions named in Lineage’s filings. U.S. IPO volume has rebounded this year, with companies raising over $22 billion, nearly two-thirds higher than the same period last year.

Lineage, led by CEO Greg Lehmkuhl, had 482 warehouses in 19 countries with 3 billion cubic feet of capacity as of Mar. 31. The company reported a net loss of $96.2 million on revenue of $5.3 billion in 2023.

Lineage is expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol LINE.

Why It Matters: The successful IPO of Lineage Inc. comes at a time when investors are anticipating Federal Reserve rate cuts. This anticipation has led to mortgage rates hitting their lowest point since February.

Earlier in the month, inflation data sparked a rush for gold, real estate, treasuries, and yen, as traders saw a September rate cut as a done deal.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari