Viking Cruises to return to the market with IPO

2024-03-01T18:19:40+00:00 March 1st, 2024|Finance|

Viking Cruises is working on a US initial public offering (IPO) in an effort to raise $500 mill or more, according to Bloomberg.

Sources told Bloomberg that the IPO could happen as soon as the second quarter of this year, though the details regarding the timing and size may change.

Bank of America, JPMorgan, UBS, and Wells Fargo were thought to be working with Viking Cruises on the listing.

Viking is currently around $4.7 bill in debt, Bloomberg said.

The cruise company has raised about $1 bill during two rounds of share offerings, the latest of which ($500 mill) came from  private equity firm TPG and the Canada Pension Plan Investment Board

In June last year, Viking sold $720 mill in junk bonds to refinance its debt, which was accumulated during the pandemic.

Previously issued notes with a coupon of 13%, had caused Viking’s interest expense to soar to 41% between 2020 and 2022, according to reports.

Headquartered in Basel, Switzerland, Viking Cruises was founded in 1997 by industry veteran Torstein Hagen and expanded into the American Market in 2000.

The company operates a fleet of over 90 vessels, offering river, ocean and expedition voyages worldwide.

***In an update, on 23rd February, Viking Holdings announced that it has confidentially submitted a draft registration statement on Form F-1 with the US Securities and Exchange Commission (SEC) relating to the proposed IPO of its ordinary shares.

The number of ordinary shares to be offered and the price range for the proposed offering have not yet been determined.

The IPO is expected to occur after the SEC completes its review process, subject to market and other conditions.