Lineage, the world’s largest cold storage real estate investment trust (REIT), rose as much as 5% in its debut on the Nasdaq Stock Market on Thursday after going public. under the stock symbol “LINE”.
Lineage priced 57 million shares at $78 a share on Wednesday, near the top of its initial target range of $70 to $82. The company raised $4.4 billion at an implied valuation of more than $18 billion, making it the largest public offering since the chip designer Armlisted at a value of $4.8 billion last September and more than doubled the size of the cruise operator. Viking Grouplisted in May.
The lineage is four times CNBC Disruptor 50 that company ranked number 46 on this year’s list.
One of the biggest factors leading to the company’s success is its aggressive acquisition strategy.
“We started with one warehouse and have made 116 acquisitions to make Lineage what it is today,” co-founder and co-executive chairman Adam Forste told CNBC.Squawk Box“Thursday morning before stocks started trading.
In the past year alone, Lineage has acquired Grupo Fuentes, Burris Logistics, Kennedy Transportation, and Harnes. The acquisition of Burris alone gives Lineage eight new facilities.
“A lot of the families we acquired the company from transferred equity to Lineage as part of their transaction, so they’re here celebrating with us today,” Forste said, adding that the company’s name comes from the network or lineage of family-owned warehouses that he and co-founder Kevin Marchetti put into operation.
Lineage has accumulated over 480 bases, totaling approximately Capacity 2.9 billion cubic feet across countries in North America, Europe, and the Asia-Pacific region. These locations create a global network of cold storage facilities, minimizing food waste in the supply chain and its impact on the environment.
Food loss occurs at every level of the supply chain, with an estimated food value of $600 billion. wasted during or immediately after harvest. This growing amount of waste now accounts for around 11% of the world’s emissions – making it one of the biggest environmental problems contributing to climate change.
Morgan Stanley, Goldman Sachs, Bank of America, JP Morgan and Wells Fargo are the lead underwriters for Lineage’s offering.
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