Lineage, a global leader in cold-storage warehousing, successfully raised $4.44 billion in its U.S. initial public offering (IPO). This remarkable achievement positions Lineage for the largest stock market debut globally in the current year.

Headquartered in Novi, Michigan, Lineage strategically priced just under 57 million shares in New York at $78 per share, aligning with the upper limit of its previously indicated range of $70 to $82.

Earlier in the day, Reuters exclusively reported the IPO pricing, citing reliable sources. The report revealed that Lineage initially planned to offer 47 million shares but increased the number due to overwhelming demand from investors.

With this $4.44 billion IPO, Lineage’s valuation now exceeds $18 billion, making it the most significant IPO since chip designer Arm’s $4.87 billion offering in September 2021. Lineage’s shares are poised to commence trading on the Nasdaq stock exchange on Thursday.

Investors consider Lineage as an indicator of the broader IPO market. Some companies that were enticed to list by the stock market hovering near record highs have subsequently seen their shares trade poorly, as investors grow skeptical of the inflated valuations. This has discouraged many IPO hopefuls from following suit.

Global IPOs amounted to $48.8 billion in the first half of 2024, representing an 18% decrease year-over-year and the lowest level for this period since 2016, according to LSEG data. U.S. IPO proceeds totaled $17 billion, however, more than double the previous year’s levels and a three-year high.

In a positive sign for IPO market sentiment, shares of OneStream, a financial software company backed by private equity firm KKR, concluded their initial trading session on Wednesday at $26.85 after being priced at $20 in their IPO.

Lineage operates a network of 482 temperature-controlled warehouses worldwide, catering to over 13,000 customers primarily in the food supply chain.

Founded by private equity executives Adam Forste and Kevin Marchetti in 2008 with a single warehouse in Seattle, the business has expanded through 116 acquisitions, achieving $5.3 billion in revenue by 2023.

Majority ownership of Lineage is held by Forste and Marchetti's firm, Bay Grove Capital. As a real estate investment trust, Lineage offers shareholders tax deductions on dividends.

Despite a net loss of $162.8 million for the 12 months ending in March, the company continues to utilize its cash flow for strategic acquisitions and business investments.