IPO Market Doubles Compared to Last Year... "September Market Optimism"
Frozen logistics company Lineage raised approximately $4.4 billion (about 6.0997 trillion KRW) through its initial public offering (IPO), leading to analyses that the U.S. IPO market is reviving.
According to Bloomberg on the 25th (local time), Lineage issued 57 million common shares at $78 per share. Lineage's stock price closed at $80.78 per share, up 3.6% that day.
This is the largest record since September last year when British semiconductor design company ARM successfully raised $5.2 billion (about 7.2088 trillion KRW) through its IPO. With this IPO, Lineage's corporate value exceeded $18 billion.
Lineage operates more than 480 warehouses worldwide and counts food retailers, distributors, and feed manufacturers among its clients. It quickly supplies perishable foods to restaurants, grocery stores, and more. Headquartered in Michigan, USA, it was founded by two bankers formerly of Morgan Stanley. Last year, its revenue increased by about 8% year-on-year to $5.3 billion, while net loss was $96 million.
Major foreign media outlets such as Bloomberg have evaluated this IPO performance as a sign that the U.S. IPO market, which had been sluggish since the COVID-19 pandemic, is beginning to recover in earnest.
According to Bloomberg, companies have raised more than $28 billion through IPOs this year. This is about twice the amount compared to the same period last year but still lower compared to the same periods in 2020 and 2021.
The Wall Street Journal stated, "Strong performances by Reddit and Astra Labs in March seemed encouraging, but in June, Novelis and earlier this month StubHub postponed their IPO plans," adding, "Although not many IPOs are scheduled for August, some IPO advisors expect Lineage's strong performance to pave the way for more companies to list their shares after Labor Day (the first Monday in September)."
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