Novi, Michigan – Lineage, Inc. has filed for an initial public offering (IPO) of its common stock, aiming to raise $100 million, as indicated in a recent SEC filing. The company specializes in acquiring and managing cold-storage warehouses globally. Despite being the largest operator of its kind, Lineage has experienced a plateau in revenue growth and a decrease in adjusted funds from operations (FFO) year-over-year. Details on the IPO are still forthcoming, and a final assessment will be provided once more information is available.

Lineage, Inc., established in 2008, is headquartered in Novi, Michigan, and focuses on temperature-controlled warehouses for perishable products across the globe. Co-Executive Chairmen Adam Forste and Kevin Marchetti spearhead the management team, bringing expertise from their previous roles at notable financial institutions. The company’s offerings include distribution centers, public warehouses, production advantage warehouses, and manager warehouses.

As of March 31, 2024, Lineage has received $6.2 billion in fair market value investments from various investors, showcasing significant support for its operations. The company’s extensive portfolio comprises 293 warehouses in North America, 82 in Europe, and 88 in the Asia-Pacific region, with a total cubic square feet of 2.9 billion and 9.8 million pallet positions.

The global cold storage market has been on a growth trajectory, with a predicted increase from $120 billion in 2022 to $435 billion by 2030, driven by factors such as regulatory demands and expanding retail opportunities. In the U.S., major players in the industry include Americold, NewCold, US Cold, and others, contributing to the market’s robust expansion.

Lineage’s recent financial performance has shown a slight decline in revenue, operating income, and FFO, coupled with rising net losses. Despite these challenges, the company aims to raise $100 million through its IPO, with plans to utilize the proceeds to repay existing borrowings and for general corporate purposes.

With a strategic focus on long-term growth and a commitment to distributing profits to shareholders, LINE is navigating the competitive cold-storage warehouse industry while capitalizing on the sector’s promising prospects for expansion. However, risks associated with industry concentration and regional limitations pose challenges that the company will need to address as it moves towards its IPO. Stay tuned for more updates on LINE’s expected IPO pricing date.