Cold storage warehouse operator Lineage Inc. said it plans to share $100 million from the proceeds of its successful initial public offering with employees.
The Novi, Michigan-based real estate investment trust said Thursday that many of its 16,000 U.S. workers will receive one-time stock awards or restricted stock units (RSUs) following its July 25 debut on Nasdaq.
Shares of Lineage (NASDAQ: LINE) opened last week at $82 per share, the top end of the initial price range ($70 to $82) after settling on a $78 share price the evening before the open. The deal was upsized to nearly 57 million shares (with an additional 15% option) after early indications signaled its banking group would move just 47 million shares.
“From the very beginning, we have sought to foster an ownership mindset at Lineage and have celebrated our wins together,” said Adam Forste, Lineage founder and co-executive chairman. “Lineage’s success has been made possible because of the enormous contributions of our team members, and our Starting LINE Awards were designed to recognize and thank them for helping us build this company and take it public.”
The company also said Thursday that it will start a stock-based incentive program for its employees next year. Those RSUs will have a vesting period.
“Time and again, the Lineage team steps up to serve in the face of whatever is thrown at them — which has included a global pandemic where they served as essential workers to help keep the world fed. I am proud of this team every day but today especially I am honored to reward them for their dedicated service,” said Greg Lehmkuhl, Lineage president and CEO.
Lineage’s IPO was the largest of the year, raising $4.4 billion in proceeds and valuing the company at nearly $19 billion.
Lineages 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.
Shares of LINE were down 2.3% to $85.88 at 3:13 p.m. EDT on Thursday compared to the S&P 500, which was off 1.8%.
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