Cruise Line Viking’s IPO Raises $1.54 Billion

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(Bloomberg) — Viking Holdings Ltd., according to people familiar with the matter. priced its IPO near the top of the marketed range to raise $1.54 billion for the luxury cruise operator and two investors.

Viking and the investors sold 64.04 million shares at $24 apiece, said the people, who spoke on condition of anonymity because the information was not yet public.

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Viking was best known for its art and history-filled river tours through Europe and had marketed its shares at $21 to $25 apiece. The number of shares offered by private equity firm TPG Inc. and the Canada Pension Plan Investment Board at the time of pricing rose to 53.04 million, it said.

The scope of the possible over-allotment was also increased to 9.6 million shares, it said.

A representative for TPG declined to comment, while Viking and CPPIB did not immediately respond to requests for comment.

Before setting the price, the two investors had already increased the number of shares offered to 42 million, while the company had marketed 11 million shares.

At the IPO price, Viking will have a market value of $10.4 billion based on outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

Viking’s founder, Chairman and Chief Executive Officer Torstein Hagen, will continue to control the company along with his daughter Karine Hagen, who holds 87% of the company’s voting rights. TPG and CPPIB will each control 4.5% of the vote.

Viking was founded in 1997 and operates cruises around the world. According to the information, the company has 92 ships. The company employs more than 10,000 people in over 90 countries.

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While the company has expanded beyond its original tours on rivers like the Danube and Rhine, it continues to serve older, wealthier travelers who are looking for “more than just a vacation,” Torstein Hagen said in the company’s prospectus.

“We are clearly focused on our most relevant customer group: English-speaking travelers aged 55 and over who have the time, money and desire to explore the world,” wrote Hagen. “We don’t try to be all things to all people, which is why we only offer a monolingual experience aboard our ships; there are no casinos; and children under 18 are not allowed.”

Viking is the second-largest consumer-focused company to go public on a U.S. exchange this year, following Amer Sports Inc.’s $1.57 billion listing in January. Since then, a number of technology, healthcare and industrial companies have held initial public offerings, raising more than $13 billion, excluding Viking, according to data compiled by Bloomberg.

Bermuda-based Viking joins its listed rivals Royal Caribbean Cruises Ltd., Carnival Corp. and Norwegian Cruise Line Holdings Ltd. at. Royal Caribbean, the largest of them with a market value of around $37 billion, is the only one of the three whose stocks have risen back to pre-coronavirus pandemic levels.

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In 2022, Viking reported profits of $399 million on revenue of $3.2 billion, rising sharply from the previous two years as the pandemic eased. Last year, the company lost $1.8 billion while revenue rose to $4.7 billion. The filings show adjusted earnings before interest, taxes, depreciation and amortization of $1.09 billion for 2023, which includes a gain of about $2 billion from the revaluation of derivatives related to preferred shares that will convert in the IPO .

Viking’s offering is led by Bank of America Corp., JPMorgan Chase & Co., UBS Group AG and Wells Fargo & Co. Viking shares are expected to begin trading on the New York Stock Exchange on Wednesday under the symbol VIK.

Read more: Viking’s growth and profit potential pull alongside public rivals

– With assistance from Ryan Gould.

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