Nandini Roy Choudhury, writer
Brief news
- Lineage, the largest temperature-controlled warehouse real estate investment trust (REIT) in the world, experienced a significant increase of 5% during its debut on the Nasdaq Stock Market.
- The company successfully raised $4.4 billion through its public offering, surpassing a valuation of $18 billion, making it the largest public offering since Arm’s listing in September.
- Lineage has built an impressive network of over 480 facilities worldwide, with a combined capacity of approximately 2.9 billion cubic feet, aiming to minimize food waste in the supply chain and its ecological consequences.
Detailed news
Lineage, the largest temperature-controlled warehouse real estate investment trust (REIT) in the world, experienced a significant increase of 5% during its debut on the Nasdaq Stock Market on Thursday. This positive performance occurred after the company went public under the ticker symbol “LINE.”
Lineage successfully priced 57 million shares at $78 apiece on Wednesday, reflecting strong demand for the offering. The company successfully raised an impressive $4.4 billion, surpassing the valuation of $18 billion. This remarkable achievement makes it the largest public offering since Arm’s $4.8 billion listing last September. Furthermore, it is worth noting that the company’s public offering is more than twice the size of Viking Holdings, a cruise operator that went public in May.
One of the key contributors to the company’s success is its proactive approach to acquiring other businesses.
“We began with a single warehouse and have completed 116 acquisitions to transform Lineage into its current state,” co-founder and co-executive chairman Adam Forste mentioned during an interview on CNBC’s “Squawk Box” Thursday morning, just before shares began trading.
In the past year, Lineage has made several acquisitions, including Grupo Fuentes, Burris Logistics, Kennedy Transportation, and Harnes. The acquisition of Burris alone resulted in Lineage gaining eight new facilities.
Many families who have sold companies to us have joined us in celebrating today,” Forste mentioned. He explained that the company’s name, Lineage, is inspired by the network of family-owned warehouses that he and co-founder Kevin Marchetti have incorporated into the company.
Lineage has built up an impressive network of more than 480 facilities, with a combined capacity of approximately 2.9 billion cubic feet. These facilities are spread across various countries in North America, Europe, and the Asia-Pacific region. These locations establish a worldwide network of cold-storage facilities, minimizing food waste in the supply chain and its ecological consequences.
Food loss occurs at all stages of the supply chain, resulting in a staggering $600 billion worth of food being wasted during or immediately after harvest. The increasing amount of waste is responsible for approximately 11% of global emissions, making it a significant environmental concern that contributes to climate change.
Lineage’s offering was underwritten by Morgan Stanley, Goldman Sachs, Bank of America, J.P. Morgan, and Wells Fargo.
Source : CNBC News
