The Rise of Viking Holdings: A Look at the Cruise Operator’s Impending IPO

Key Takeaways

• Cruise operator Viking Holdings generated $4.7 billion in revenue last year, the company revealed in a Friday filing with the SEC, ahead of its planned debut on the New York Stock Exchange under 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 over $10 billion.
• Cruise stocks have started to rebound after reporting strong results amid a surge in demand as the industry works to recover from the billions in losses suffered during the pandemic.

Viking Holdings, the parent company of the Viking cruise line, filed an F-1 form Friday with the Securities and Exchange Commission (SEC) ahead of its planned initial public offering (IPO) that revealed the company made $4.7 billion in revenue in 2023. Viking, which said Friday that it plans to debut on the New York Stock Exchange under the ticker “VIK,” initially announced plans to pursue an IPO in February. 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 over $10 billion.

Viking’s Business Metrics Show Growing Revenue

The cruise 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 loss last year, largely because of a refinancing program it undertook through private placement, a way to raise capital without undergoing an IPO. Adjusting for those one-time losses, Viking said it reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $1.09 billion for 2023.

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

Cruise Stocks Climb on Surge in Demand

In what could be a promising sign for Viking’s debut, some cruise stocks have started to reverse losses suffered during the pandemic, with Norwegian Cruise Line Holdings (NCLH), Royal Caribbean Group (RCL), and Carnival Corp. (CCL) recently reporting record bookings. As of Friday’s close, Norwegian shares have gained 45% over the past 12 months, while Carnival shares have surged 55%, and Royal Caribbean shares more than doubled in value over the same period.

The cruise industry has been working tirelessly to recover from the devastating impact of the COVID-19 pandemic. With travel restrictions easing and pent-up demand for leisure activities rising, cruise operators like Viking Holdings are poised to capitalize on the resurgence in interest for luxury travel experiences.

As Viking Holdings prepares for its IPO and entry into the public markets, investors are closely watching the company’s financial performance and growth prospects. With a strong revenue base and a strategic expansion plan in place, Viking Holdings is well-positioned to attract investor interest and establish itself as a key player in the global cruise industry.

In conclusion, Viking Holdings’ upcoming IPO marks a significant milestone for the company and underscores its commitment to growth and innovation in the luxury cruise sector. As the industry continues to rebound and consumer confidence in travel returns, Viking Holdings stands ready to set sail into a new era of success and prosperity.