Norwegian billionaire Torstein Hagen has taken a significant step towards listing his renowned cruise company, Viking Cruises, on the New York Stock Exchange. Formal IPO application documents have been filed with the US Securities and Exchange Commission (SEC).
Reuters sources previously estimated the potential IPO valuation at $500 million or higher. Although the exact number of shares Hagen plans to sell remains undisclosed, both he and his daughter, Karine Hagen (Viking Cruises' Executive Vice President), are listed as potential sellers, with the final decision depending on the offering price.
The IPO prospectus highlights Viking Cruises' impressive growth trajectory. Since 2007, passenger numbers have surged from 80,000 to nearly 650,000 annually. Revenue in 2023 totaled $4.7 billion. However, despite doubling income since the pandemic-stricken 2022, the company incurred a significant loss of $1.9 billion last year.
Hagen believes that becoming a publicly-traded company will enhance Viking Cruises' financial flexibility and position the company to capitalise on future opportunities. This IPO may be well-timed, given the recent surge in share prices of other major cruise lines like Royal Caribbean Cruises.
A consortium of prominent investment banks, including Bank of America, JPMorgan Chase, UBS Investment Bank, Wells Fargo Securities, HSBC, and Morgan Stanley, will lead the capital raising efforts for Viking's listing.
