Cold storage real estate investment trust Lineage Inc. announced the pricing of its initial public offering on Tuesday, which values the company at roughly $19 billion.
The offering includes 47 million shares of common stock and a customary 30-day, 15% option (an additional 7.05 million shares) to deal underwriters. The company’s stock will be listed on the Nasdaq under the ticker “LINE.” The price range was set at $70 to $82 per share.
Net proceeds ranging from $3.4 billion to $3.9 billion (assuming the deal underwriters can exercise the option) will be used to repay debt, fund cash grants to certain employees and pay transaction expenses. Any additional proceeds will be used for general corporate expenses or will be invested in short-term instruments.
The Novi, Michigan-based temperature-controlled warehouse operator manages 482 locations with 3 billion cubic feet of space across North America, Europe and the Asia-Pacific region. Nearly two-thirds of the facilities are in North America. In addition to being a landlord, it provides other services like freight forwarding, customs brokerage, drayage and truck transportation.
Lineage is backed by private equity firm Bay Grove and has raised more than $13 billion in capital since its 2008 inception.
For the 12-month period ended March 31, the company generated $5.3 billion in revenue, $1.8 billion in net operating income and $1.3 billion in adjusted earnings before interest, taxes, depreciation and amortization.
Morgan Stanley, Goldman Sachs, BofA Securities, J.P. Morgan and Wells Fargo were listed as lead book-runners on the deal, which included a total of 28 investment banks.