Equities

Lineage Seeks Over $3B in IPO, Eyes $30B Valuation

Lineage aims to raise over $3 billion in IPO, targeting a valuation exceeding $30 billion.

By Bill Bullington

6/11, 15:56 EDT
Goldman Sachs Group, Inc.
Morgan Stanley
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Key Takeaway

  • Lineage is planning a major IPO in the US, aiming to raise over $3 billion and targeting a valuation exceeding $30 billion.
  • Hyundai Motor Co. plans to file for an IPO for its India unit, seeking to raise $2.5 billion with a potential valuation of up to $25 billion.
  • Tempus AI aims to raise $400 million in its Nasdaq IPO, highlighting ongoing investor interest in AI-themed companies despite mixed performance from recent software IPOs.

Lineage's IPO Plans

Logistics giant Lineage is preparing for a significant initial public offering (IPO) in the United States, aiming to raise over $3 billion, according to sources familiar with the matter. The company may seek as much as $3.5 billion, although the final decision on the size and timing of the listing has not been made. Lineage, based in Michigan, could potentially list as soon as July. The real estate investment trust (REIT) is targeting a valuation exceeding $30 billion for the IPO and is collaborating with Morgan Stanley and Goldman Sachs Group Inc. on the offering.

A $3 billion IPO would be the largest since Arm Holdings Plc's $5.2 billion US IPO in September. This year, the three largest listings have been from Europe, with Puig Brands SA leading by raising around $2.8 billion in a Madrid IPO in April. Lineage, led by CEO Greg Lehmkuhl and backed by Bay Grove Capital, operates over 480 temperature-controlled storage facilities with a total capacity of 3 billion cubic feet across North America, Europe, and Asia. Its closest competitor, Americold Realty Trust Inc., operates over 240 facilities with about 1.5 billion cubic feet of storage.

Hyundai's India Unit IPO

Hyundai Motor Co. is planning to file for an IPO for its India unit as soon as this month, with a potential listing by the end of the year. The automaker aims to raise approximately $2.5 billion, making it one of the largest IPOs in India, following Life Insurance Corp. of India's $2.5 billion offering in 2022. Hyundai is seeking a valuation of up to $25 billion for the IPO. The Economic Times reported that Hyundai’s India unit is likely to file a draft prospectus with the market regulator within the next two weeks.

Hyundai's advisers for the IPO include Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Kotak Mahindra Bank Ltd., and Morgan Stanley. While final decisions on the size and timing are yet to be made, the proceeds from the IPO will be used to expand operations. Hyundai Motor India Ltd. is the second-largest carmaker in India by sales.

AI IPO Market Trends

This week, Tempus AI, a healthcare diagnostics company utilizing AI to interpret diagnostic tests, is set to go public on the Nasdaq. Tempus AI plans to sell 11 million shares at $35-$37 each, aiming to raise $400 million with a market value of $5.9 billion. The company generated total revenues of $531.8 million in 2023 but reported a net loss of $214.1 million. Tempus AI's IPO is one of the few AI-themed IPOs in 2024, despite high investor interest in AI companies.

Astera Labs, which went public in March, is up 73% from its initial price, while Reddit, with some AI aspects, is up 77% since its March debut. However, other recent software IPOs have shown mixed performance. Ibotta, a digital advertising platform, is down 11% from its initial price, and data security firm Rubrik is up 3%. Many AI firms continue to raise funds in private markets, avoiding public market valuation haircuts. For instance, DataBricks raised $684 million in its latest funding round, and CoreWeave raised $1.1 billion last month.