Viking shares rise more than 10% after cruise line operator's market debut

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The company's initial public offering coincides with a strong rebound in cruise bookings.

Ivan Pisarenko | AFP | Getty ImagesAboard its smaller, upscale vessels, you won't find any kids. In fact, the cruise line doesn't hide the fact that it is going after the high-income baby boomer.In Viking Holdings' prospectus, the company said its cruises are for the "thinking person," underscoring its efforts to appeal to travelers seeking adventure and new experiences.

The luxury cruise line was targeting a $10.4 billion valuation in its initial public offering on the New York Stock Exchange on Wednesday, making it the third-largest cruise operator afterViking upsized its IPO after existing shareholders decided to sell an additional 9 million shares amid strong demand from mutual fund investors, according to a source familiar with the situation.In 1997, Viking had four ships.

While the company's prospectus showed Viking brought in $4.71 billion in sales in 2023, it did report a net loss for the year. What is getting investors excited is the company's revenue per passenger of $7,251, which is much higher than that of any other publicly traded cruise line. Viking's premium price point allows it to make more money on each customer.

 

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