Cruise operator Viking saw is shares rise in an initial public offer (IPO) to raise $1.54 billion on the New York Stock Exchange.
Shares in the river and ocean cruise company closed 9% higher at $26.10 on Wednesday after pricing at $24 on Tuesday.
The stock price gave Viking a market capitalisation of $11.2 billion as it became a publicly traded company on the NYSE.
The IPO proceeds include $264 million in funds for Viking that will cover tax obligations from the listing as well as provide working capital, according to the Financial Times.
The listing gives founder Torstein Hagen a stake worth more than $5 billion in the business he set up in 1997 with four European river cruise vessels.
The current 92-strong fleet includes Viking Expeditions, established in 2022.
Additional equity injected during the pandemic helped Viking weather the downturn in better financial shape than listed rivals such as Carnival Corporation and Royal Caribbean, which both took on substantial debt.
While the company’s prospectus showed Viking brought in $4.71 billion in sales in 2023, a net loss was reported for the year.
The company disclosed a loss of about $1.9 billion last year as cruise operating expenses increased by 33% to $2.85 billion. Viking posted adjusted Ebitda of $1.09 billion on revenue of $4.7 billion.
Hagen told the FT: “We are contrarians. When times are bad, we use that opportunity to get more tonnage.
“During the pandemic, we used that opportunity to take delivery of more ships and we started placing new orders when nobody else dared to do it.”
Viking’s cruises are already 35% sold for 2025, well ahead of its 2024 bookings at this point last year, he added.
In a statement to coincide with the IPO, Hagen said: “Today marks a historic day for Viking and our family of employees, guests, travel advisors and valued partners around the world.
“We have always done things differently from others in the travel industry. We create experiences for thinking people, and ever since the beginning, our vision has been that travel should be more about the destination and local culture.
“Now, as one of the world’s leading travel companies, we are capitalising on significant opportunities ahead to meet increasing demand for culturally enriching experiences and our guest’s desire to explore the world.”
The company said in its IPO filing last month: “Direct bookings reduce commissions paid to travel agents, which reduces our distribution costs and improves our margins.
“Direct bookings also provide an additional opportunity for direct contact with our guests, allowing us to build stronger brand awareness and deliver a more personalised experience for our guests. With a marketing database that includes more than 56 million North American households, we believ
In a message to prospective shareholders, Hagen said that “we rely on direct marketing to drive the majority of our bookings,” adding. “With significant investments in marketing across various channels and the ability for customers to book directly with Viking, we have the ability to generate demand rather than wait for third parties to do so for us.”