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Lineage, the world’s largest temperature-controlled warehouse real estate investment trust (REIT), saw its shares rise as much as 5% in its Nasdaq Stock Market debut on Thursday after going public under the ticker symbol “LINE.”
Lineage offered 57 million shares on Wednesday at $78 a share, near the high end of its initial target price of $70 to $82. The company has raised $4.4 billion at an estimated valuation of more than $18 billion, making it the largest public offering since the semiconductor design company. armThe company went public in September last year in a deal worth $4.8 billion, more than double the size of cruise line Viking Holdings, which went public in May.
Lineage 4 times CNBC Disruptor 50 The company ranked 46th on this year’s list.
One of the biggest factors behind the company’s success is its aggressive acquisition strategy.
“We started with one warehouse and through 116 acquisitions we’ve grown Lineage into what it is today,” co-founder and co-chairman Adam Forste said on CNBC’s “Squawk Box” Thursday morning before the stock began trading.
Last year alone, Lineage acquired Grupo Fuentes, Barris Logistics, Kennedy Transportation, and Harness. With the Barris acquisition alone, Lineage 8 new buildings.
“Many of the families whose companies we acquired put equity into Lineage as part of the deal, so they’re here celebrating with us today,” Forste said, adding that the company’s name comes from the network of family-owned warehouses, or lineage, that he and co-founder Kevin Marchetti inherited.
Lineage has over 480 facilities, with a total of approximately 2.9 billion cubic feet of capacity These locations, located across countries in North America, Europe and Asia Pacific, create a global network of cold storage facilities to reduce food waste and the environmental impact of the supply chain.
Food waste occurs at every level of the supply chain, with an estimated $600 billion worth of food wasted They are discarded during or immediately after harvest. The ever-growing amount of waste currently accounts for around 11% of global emissions and is one of the biggest environmental problems contributing to climate change.
Lineage’s IPO was led by Morgan Stanley, Goldman Sachs, Bank of America, JPMorgan and Wells Fargo.
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