Viking is set to go public with an IPO valuing the company at $10 billion, making it a significant player in the luxury travel sector. The company, known for its river and ocean cruises, along with a group of shareholders, is expected to raise over $1 billion through the IPO set to take place on Wednesday. The stock will trade on the New York Stock Exchange under the ticker symbol VIK, with an anticipated price per share between $21 and $25, and a total of 53 million shares being offered.
The IPO will see Viking chairman, Torstein Hagen, who co-founded the company in 1997, become significantly wealthier, with a worth estimated at around $5 billion. Despite reporting a $1.86 billion loss in its 2023 fiscal year, Viking is optimistic about its future, attributing the loss to one-time events. With a focus on well-off travelers over the age of 55, Viking’s average revenue per passenger last year was $7,250. The company stands out from traditional ocean cruise lines by offering a more luxury-focused experience, without amenities like water slides or casinos onboard.
Viking has reported serving a substantial portion of luxury cruise-goers, both in the ocean and river cruise sectors. The company claims to have served one out of four ocean cruise travelers and one out of two river cruise travelers last year. With competitors like Oceania, Silversea, Seabourn, and Regent in the ocean cruise sector, and Grand Circle in the river cruise sector, Viking is holding its own in the luxury travel industry. While most of Viking’s guests come from North America, the company offers cruise ship itineraries in Europe, Antarctica, and other destinations around the world.
Looking towards the future, Viking is considering using the capital from the IPO to expand its offerings to include land-based tours and excursions. The company also plans to allocate funds towards paying off its debt, which was $5.4 billion as of December. With a fleet of 80 river vessels and nine ocean-sailing ships, Viking has carved out a niche for itself in the luxury travel market. Despite not being profitable last year, the company remains optimistic about its continued growth and success in the industry.
The IPO of Viking is being closely watched by leaders in the luxury travel sector, as it represents a significant valuation of $10 billion. The company’s focus on well-off travelers, unique cruise experiences without traditional amenities, and expansion plans for land-based tours and excursions indicate a strong presence in the luxury travel market. With a large portion of the company’s guests coming from North America, Viking’s future plans to use IPO capital to further expand its offerings and pay off existing debt position the company for continued growth and success in the industry.
