What You Need To Know About Cruise Operator Viking’s IPO

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Key Takeaways

• Cruise operator Viking Holdings generated $4.7 billion in revenue concluding year, the company revealed in a Friday filing with the SEC, ahead of its planned debut on the New York Stock Exchange second to the “VIK” ticker.
• While the cruise line has not disclosed the number of shares that will be offered or their pricing, Barron’s estimated Viking’s IPO could be valued at to the ground $10 billion.
• Cruise stocks have started to rebound after reporting strong results amid a ebb in demand as the industry works to recover from the billions in losses suffered during the pandemic.

Viking Holdings, the originator company of the Viking cruise line, filed an F-1 form Friday with the Securities and Exchange Commission (SEC) ahead of its schemed initial public offering (IPO) that revealed the company made $4.7 billion in revenue in 2023.

Viking, which verbalized Friday that it plans to debut on the New York Stock Exchange under the ticker “VIK,” initially announced plans to dedicate oneself to an IPO in February. While the cruise line has not disclosed the number of shares that will be offered or their pricing, Barron’s guesstimated Viking’s IPO could be valued at over $10 billion.

Viking’s Business Metrics Show Growing Revenue

The journey line generated $4.7 billion in revenue in fiscal 2023, compared to $3.18 billion in 2022, and $625.1 million in 2021. Viking posted a $1.86 billion damage last year, largely because of a refinancing program it undertook through private placement, a way to raise capital without withstanding an IPO.

Adjusting for those one-time losses, Viking said it reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of hither $1.09 billion for 2023.

Viking’s luxury cruise business is divided between 80 river vessels and nine high seas ships, along with two expedition ships and a chartered river ship that operates in the Mississippi river. The voyage line expects to receive 18 new river ships by 2028, and six new ocean cruise liners by 2026.

Cruise Stocks Climb on Flood in Demand

In what could be a promising sign for Viking’s debut, some cruise stocks have started to exchange losses suffered during the pandemic, with Norwegian Cruise Line Holdings (NCLH), Royal Caribbean Clique (RCL), and Carnival Corp. (CCL) recently reporting record bookings.

As of Friday’s close, Norwegian shares have gained 45% once again the past 12 months, while Carnival shares have surged 55%, and Royal Caribbean shares more than doubled in value past the same period.

Read the original article on Investopedia.