Sources said that the world's largest cold storage operator Lineage raised $4.45 billion in its initial public offering (IPO) in the United States, which is expected to become the world's largest IPO transaction this year.

Lineage: The world's largest cold storage and logistics supplier

According to data released by the Global Cold Chain Alliance (GCCA), Lineage has led the global TOP 25 cold storage and logistics supplier list for many years. In 2024, Lineage also firmly occupied the top position in the global cold storage list.

Source: GCCA

With a cold storage capacity of 3 billion cubic feet (equivalent to about 84.95 million cubic meters), Lineage occupies 11.8% of the market share, which is twice that of Americold, the second place in the list, and the sum of the market shares of the other nine companies in the TOP10 of global cold chain logistics companies.

Lineage is the world's largest global temperature-controlled warehouse real estate investment trust and integrated solution provider. Lineage's business is divided into two parts: global warehousing and global integrated solutions, of which global warehousing business contributes more than 70% of revenue.

• Global warehousing business: Lineage provides customers with temperature-controlled warehousing, storage and services by operating temperature-controlled warehouses. This business accounts for approximately 86% of Lineage's net operating income for the 12 months ending March 31, 2024.
• Global integrated solutions: Lineage supplements warehousing with supply chain services, providing customers with a comprehensive approach to facilitate the flow of products in the supply chain. This business accounts for approximately 14% of Lineage's operating income for the 12 months ending March 31 this year.

Lineage's revenue in 2021, 2022, 2023, and the first quarter of 2024 was US$3.702 billion, US$4.928 billion, US$5.341 billion, and US$1.328 billion, respectively; net losses were US$177 million, US$76 million, US$96.2 million, and US$48 million, respectively, and the overall situation was a loss. However, its net operating income has been growing, for example, its net operating income in 2023 and the first quarter of 2024 was US$1.751 billion and US$444 million, respectively.

Raising $4.45 billion, expected to become the world's largest IPO?

The $4.45 billion IPO values ​​Lineage at more than $18 billion, making it the largest IPO since British chip design company Arm raised $4.87 billion in September last year.

Lineage issued nearly 57 million shares at $78 per share, at the high end of its guidance price range of $70-82. The source added that Lineage originally planned to sell 47 million shares, but increased the offering due to strong demand and will start trading on Nasdaq (17342.4133, -654.94, -3.64%) on Thursday.

LSEG data shows that in the first half of this year, global IPO financing totaled $48.8 billion, down 18% year-on-year, the lowest level since 2016. However, the total financing of US IPOs was $17 billion, more than doubling year-on-year, a three-year high.

How to participate in US stock IPOs and buy Lineage shares?

The time for new U.S. stocks is 9:30 to 16:00 (EST) every Monday to Friday, that is, 21:30-4:00 (summer time) and 22:30-5:00 (winter time) Beijing time. The new U.S. stocks implement a universal policy and weighted principle, that is, while trying to meet the needs of retail investors, the more shares the more likely the customer will win. The winning results are generally announced before the new stock is listed or on the previous trading day. The new process is as follows:

1. Open uSMART SGAPP and complete the account opening instructions.
2. Click "Trading" at the bottom of the homepage to view "More".
3. Select "New Stock Subscription" to complete the subscription.

   

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