Temperature-controlled logistics real estate investment trust Lineage Inc. said nearly 57 million shares of its common stock were priced at $78 per share ahead of its initial public offering on Thursday. The deal will haul in roughly $4.4 billion in proceeds, better than the $3.4 billion to $3.9 billion range previously expected.
A 30-day option for a 15% allotment (a little more than 8.5 million shares) has been granted to underwriters. The company said it will use proceeds to repay debt, fund cash grants to certain employees and pay transaction expenses. Any additional proceeds will be used for general corporate expenses or to repay other outstanding debt.
The Novi, Michigan-based cold storage warehouse operator is backed by private equity firm Bay Grove. Since its 2008 inception, Lineage had raised more than $13 billion in capital prior to the IPO. The transaction will value the company at approximately $19 billion.
Lineage manages 482 locations with 3 billion cubic feet of space across North America, Europe and the Asia-Pacific region. It also provides freight forwarding, customs brokerage, drayage and truck transportation.
For the 12 months ended March 31, it 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.
The deal was originally expected to include 47 million shares with a customary 15% option, but demand drove the need for the increase in deal size. The initial price range was $70 to $82 per share.
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.
Shares of Lineage are set to debut on the Nasdaq under the ticker “LINE” on Thursday.
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