(Bloomberg) -- Temperature-controlled storage and logistics giant Lineage Inc. is seeking to raise as much as $3.85 billion in its initial public offering, according to a person with knowledge of the matter.
Novi, Michigan-based Lineage is offering 47 million shares for $70 to $82 each, the person said, asking not to be identified because the matter is private. The listing could give the real estate investment trust a market value of about $19.2 billion, according to Bloomberg calculations.
Considerations are still ongoing, no final decisions have been made and the terms may still change, the person said.
The Bay Grove Capital-backed REIT’s proposed debut would one of the largest in the US since ARM Holdings Plc, and a rare sizable listing in the summer months. Aside from a handful in 2020 and 2021 when the pandemic disrupted travel, only three companies in the past decade raised more than $1 billion on US exchanges in July, data compiled by Bloomberg show.
Lineage’s listing is good news for the 20 underwriters and other financial institutions named in its filings. US IPO volume recovered in the first six months of this year from a relatively quiet period, with companies raising more than $21 billion. That’s the best start to a year since 2021, but well below the average in the decade before the pandemic, the data show.
Other companies that have filed for first-time share sales include KKR & Co.’s software company OneStream Inc., which is seeking to be valued at as much as $6 billion in an IPO, Bloomberg News has reported.
Lineage, led by Chief Executive Officer Greg Lehmkuhl, has 482 warehouses with 3 billion cubic feet of capacity as of March 31, the filing shows. Bay Grove will continue to have a majority of the voting power following the IPO.
The company had a historical net loss of $96.2 million on revenue of $5.3 billion in 2023, compared with a net loss of $76 million on revenue of $4.9 billion a year earlier, according to the filing.
The joint bookrunning managers include Morgan Stanley, Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. KKR & Co. is its lead financial adviser. Lineage plans for its shares to trade on the Nasdaq Global Select Market under the symbol LINE.
--With assistance from Ryan Gould and Bailey Lipschultz.
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