Aerial view of cruise ship Viking Jupiter docked in Montevideo port, January 5, 2022.
Ivan Pisarenko | AFP | Getty Images
Viking is not your typical cruise company.
There are no children on the small, luxury ships. In fact, cruise lines have made no secret of the fact that they are targeting high-income baby boomers.
casino? Not on these cruise ships.
Viking Holdings' prospectus said its cruises are for „thinkers“ and emphasized its efforts to appeal to travelers looking for adventure and new experiences.
„They have money, they have time. And in my opinion, the moment you try to do everything for everyone, you know what happens? Nothing works. So we're very ” said CEO Torstein Hagen. Viking Chairman told CNBC.
The luxury liner is aiming for a valuation of $10.4 billion in an initial public offering on the New York Stock Exchange on Wednesday, making it the third-largest cruise line. royal caribbean and carnival. norwegian cruise line It is the fourth largest. Viking's IPO price is $24 per share and will trade under the ticker „VIK.“
Viking increased the size of its IPO after existing shareholders decided to sell an additional 9 million shares following strong demand from mutual fund investors, according to people familiar with the situation.
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In 1997, Viking had four ships. The company quickly grew its fleet to 92 vessels, 80 of which are river-based vessels that ply the world's largest rivers, including France's Seine and Egypt's Nile.
„We're different because the big cruise lines are big in the Caribbean,“ Hagen said. „There's only a small part left in the Caribbean. The rest is in Europe.“
The timing of Viking's IPO coincides with a strong recovery in cruise bookings. April 25th, Royal Caribbean improved the guidance Looking ahead to 2024 amid positive prospects for the sector.
„Cruising is really coming to the forefront as a competitive option in travel,“ Royal Caribbean CEO Jason Liberty told CNBC in a recent interview. „The travel industry as a whole is $1.9 trillion. Of that, the cruise industry is $56 billion. I think cruising is at a much different level than it was before the pandemic.“
Viking had sales of $4.71 billion in 2023, but reported a net loss that year, according to the company's prospectus. What excites investors is that the company's revenue per passenger is $7,251, which is far higher than the revenue of other publicly traded cruise lines. Viking has premium pricing, which allows them to earn more from each customer.
Investors will also be watching the details of Viking's expansion plans. Norwegian Cruise Line announced earlier this month that it has ordered eight new ships to be delivered over the next 12 years.
Carnival, Royal Caribbean and MSC Cruises all have strong portfolios, and there are growing concerns that overcapacity is weighing on demand. But for now, the industry is focused on how well demand recovers from the pandemic. even if the price is highCruising is still cheaper on average than a hotel vacation.
UBS leisure analyst Robin Farley said land-based hotel room rates are up 25% compared to 2019. Over the same period, cruise ship room rates have increased by 10%.
„There's a huge disconnect between cruises and hotels, and that's what makes cruises so attractive right now,“ Farley said.