Today’s News
Lineage Logistics, a cold storage real estate investment trust (REIT), announced it is targeting a valuation of up to USD 19.16 billion in its upcoming U.S. IPO, potentially making it the largest listing of the year.
Image Source: UK Haulier
Backed by private equity firm Bay Grove Capital, Lineage aims to raise as much as USD 3.85 billion by offering 47 million shares priced between USD 70 and USD 82. This IPO could exceed Viking Holdings’ recent USD 1.54 billion offering, based on LSEG data.
Lineage Logistics — A Global Leader in Cold Storage
Starting with a single warehouse in Seattle in 2008, Lineage has grown to become the largest operator of temperature-controlled warehouses globally, boasting 482 facilities across North America, Europe, and Asia Pacific.
The company, headquartered in Novi, Michigan, competes closely with Americold Realty Trust and provides essential storage and logistics services for perishable food products worldwide.
Despite the challenges faced by the cold storage industry, including decreased warehouse volumes due to higher food costs, Lineage’s IPO is highly anticipated.
Image Source: Detroit Labs
Image Source: Wall Street Journal
Image Source: DC Velocity
“Lineage is poised to be the largest global IPO of the year to date, so its debut will garner a lot of attention,” said Avery Marquez, assistant portfolio manager at Renaissance Capital.
“We don’t expect an explosive, tech-like pop on the first day – a modest gain and solid aftermarket trading would be a win.”
The IPO is supported by heavyweight investors like BentallGreenOak and Stonepeak, and also sees interest from Norges Bank Investment Management, which is considering buying up to USD 900 million in shares.
The funds from the IPO will be used to reduce debt, with Bay Grove retaining most of the voting power post-IPO. More than 20 Wall Street banks are underwriting the IPO, with KKR Capital Markets leading as the financial adviser.
Other News
BofA’s Q2 Profits Surpass Expectations
Bank of America reported a robust performance in the second quarter, surpassing analysts’ expectations despite higher deposit costs, fueled by gains in investment banking and trading.
Dow Soars, S&P 500 Sets New Record
The Dow Jones Industrial Average and the S&P500 hit new highs, with Dow recording its best day in over a year and the S&P500 marking its 38th record close of 2024.
Wall Street Gains, Consumer Strains in Earnings
Major U.S. banks saw a second-quarter earnings boost driven by strong investment banking and trading, despite economic uncertainties affecting lower-income consumers.
