US cold-storage warehouse giant Lineage Inc. announced late Wednesday that it had raised $4.44 billion in what would be the largest initial public offering (IPO) of 2024.
The Bay Grove Capital LLC-backed company sold 56.9 million shares in New York for $78 each, at the higher end of its indicated $70-$82 range. The move brings the Novi, Michigan-based firm’s valuation to over $18 billion.
Citing sources familiar with the matter, the world’s biggest operator of temperature-controlled warehouses had reportedly intended to sell 47 million shares and more due to robust demand.
Its IPO will be the biggest globally since UK semiconductor giant Arm Holdings plc’s $4.87 billion public listing in September of last year. The logistics company’s stock is set to make its market debut on Thursday on the Nasdaq under the ticker “LINE.”
San Francisco, California-based Bay Grove will continue to hold majority vote in the firm after the IPO.
Lineage Offering to Improve IPO Market Sentiment
Investors expect Lineage’s offering to lead the broader IPO market, following several companies’ unsuccessful attempts to list publicly when the stock market was trading close to record highs.
Such a move has seen some shares falter as weak valuations hurt investor sentiment, prompting other firms looking to launch their own IPOs to pause plans.
A London-based financial market data provider reported that IPOs worldwide raised a total of $48.8 billion in the first half of 2024, falling 18% from the previous year and marking their lowest since 2016.
US listings also generated $17 billion in the six months ending June 30, a twofold rise from the year earlier and the highest in three years.
Signaling growing optimism in the IPO market, US financial software company OneStream Inc. closed its first trading on the Nasdaq 34.25% higher at $26.85 on Wednesday. The KKR & Co. Inc.-backed firm priced its offering at $20 per share, raising around $490 million on Tuesday.
