Cruise operator Viking's IPO values company at $10.36 billion to mark biggest deal of year

By Ciara Linnane

Viking's stock jumped 9% in opening trade on the New York Stock Exchange Wednesday

Viking Holdings stock rose 9% in its first trades on the New York Stock Exchange Wednesday, after its initial public offering garnered a valuation of $10.36 billion, to mark the biggest deal of the year.

The travel company (VIK), which specializes in cruises, said late Tuesday the deal priced at $24 a share, at the higher end of its $21 to $25 price range. The company sold 64 million shares to raise $1.54 billion. In a sign of strong demand, the deal was upsized from 53 million shares that it had disclosed would be sold a week ago.

The selling shareholders are CPP Investment Board PMI-3 Inc. and TPG VII Valhalla Holdings L.P. Each owned 21.9% of the shares outstanding before the IPO. The two invested an additional $500 million in the company in November 2020, while the pandemic was still raging.

Viking filed confidentially for an IPO in February.

The stock is trading under the ticker (VIK) "VIK." There were 11 underwriters on the deal - led by BofA Securities, J.P. Morgan, UBS Investment Bank and Wells Fargo Securities.

The company booked a $1.86 billion loss in 2023 on revenue of $4.71 billion, after recording a profit of $398.5 million on revenue of $3.18 billion in 2022.

The company was founded in 1997 and acquired Europe's KD River Cruises in 2000 to expand its fleet, according to its website.

In 2000, it expanded into the U.S. market, where it has an office in Los Angeles. Today, it boasts a fleet of more than 90 ships, offering river, ocean and expedition voyages on all seven continents. The company is based in Basel, Switzerland.

The deal comes at a time of increased investor interest in IPOs, as the Renaissance IPO ETF IPO has rallied 7.7% over the past three months while the S&P 500 index SPX has gained 2.6%.

-Ciara Linnane

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05-01-24 1249ET

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