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Cold-storage warehouse giant Lineage Inc. on Tuesday set a price range for an estimated $3.6 billion initial public offering (IPO). Represented by Latham & Watkins LLP and underwriters counsel Goodwin Procter LLP, this move bolsters the near-term IPO pipeline.

Lineage Launches Potential $3.6B IPO: Details of the Offering

Lineage, a Novi, Michigan-based real estate investment trust (REIT), told regulators it plans to offer 47 million shares priced between $70 and $82, potentially raising $3.57 billion at the midpoint. If the IPO prices at midrange, Lineage would be valued at approximately $17.8 billion based on the number of outstanding common shares and equity units disclosed in its registration statement.

Listing and Schedule

Shares of Lineage are slated to list on the Nasdaq under the symbol LINE. The offering is scheduled to price during the week of July 22, according to research firm Renaissance Capital.

Company Profile

Lineage describes itself as the world's largest global temperature-controlled warehouse REIT, operating more than 84.1 million square feet across 482 warehouses in North America, Europe, and Asia. The cold-storage specialist reported a $162.8 million net loss on $5.3 billion in revenue for the 12 months ending March 31.

The company, which has historically raised capital from private investors, described going public as a "new beginning." IPO proceeds will mostly be used to repay debt, according to filings.

"Becoming a publicly traded company is a momentous decision and not without certain well-known considerations," Lineage founders Adam Forste and Kevin Marchetti said in a letter to investors published with the company's registration statement. "However, we strongly believe the public market is the best way to deliver growth at scale by providing us with the advantages of a liquid currency and direct access to a lower cost of capital to further fuel our growth flywheel."

Lineage Launches Potential $3.6B IPO : Investor Interest

Sovereign wealth fund Norges Bank Investment Management has indicated interest in buying shares totaling $900 million to support Lineage's IPO, according to securities filings. Private equity firm Bay Grove Capital, Lineage's controlling shareholder, will continue to own a majority of the REIT's voting power after the IPO, filings show.

The Growing IPO Pipeline

Lineage joins an IPO pipeline that is building up for the remainder of July. Occupational health services provider Concentra Group Holdings Parent Inc. and financial software OneStream Inc. on Monday launched plans for listings that will go to market next week.

Also on Monday, drug developer Artiva Biotherapeutics Inc. unveiled a price range on an estimated $131 million IPO scheduled for this week. Artiva joins hospital operator Ardent Health and insurance distributor TWFG Inc., who are planning sizable IPOs this week.

Lineage also said its underwriters will have a 30-day option to buy an additional 7.05 million shares at the IPO prices, potentially boosting proceeds to more than $4 billion.

Legal Representation

Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities LLC are among the lead underwriters for Lineage.

A Latham team led by partners Julian T.H. Kleindorfer and Lewis Kneib is representing Lineage. A Goodwin team led by partners Scott Chase and David Roberts is representing the underwriters. Venable LLP is also representing Lineage on matters regarding Maryland law. Lineage plans to convert its operating partnership, called Lineage OP LLC, currently based in Delaware, to a Maryland limited partnership as part of the IPO.