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Viking Holdings Soars on Market Debut, Unlock the Editor’s Digest for Free
In a stunning market debut, cruise operator Viking Holdings saw its shares rise by 9% on Wednesday, closing at $26.10 after pricing at $24 in its initial public offering worth $1.54 billion. This success has not only cemented billions of dollars in profits for two of the world’s largest investors but has also bolstered private equity firms’ hopes of exiting other long-held investments.
The Bermuda-based Viking Holdings, known for catering to English speakers aged 55 and older and banning passengers younger than 18, now boasts a market capitalization of $11.2 billion. The strong demand from investors led Viking to increase the size of the deal twice before pricing, making it the second-largest IPO in the US this year.
This success story is a ray of hope for other private equity groups looking to offload long-held investments amidst concerns about the slow reopening of the IPO market after a two-year drought. With private equity firms estimated to be sitting on 28,000 unsold companies worth more than $3 trillion globally, the Viking Holdings IPO has set a positive precedent.
US private equity group TPG and Canada’s largest pension fund, CPP Investments, were the major shareholders who sold most of the shares in Viking’s float. The deal has resulted in gains exceeding $1.5 billion for each group, marking a significant return on their initial investments made in 2016.
Viking Holdings’ founder, Torstein Hagen, attributes the company’s resilience during the pandemic to their contrarian approach and strategic investments in expanding their fleet. With cruises already 35% sold for 2025, Viking Holdings is well-positioned for future growth and success.
The cruise industry, one of the fastest-growing tourism sectors, is expected to see 36 million passengers this year, up 20% from 2019. Viking Holdings’ successful IPO adds to the total value of US IPOs this year, which now stands at about $13.5 billion.
As the market for public listings remains delicate, the success of Viking Holdings’ IPO serves as a positive indicator for future offerings. With Spanish beauty group Puig set to list in Madrid in a deal worth up to €3 billion, the momentum in the IPO market is expected to continue. Unlock the Editor’s Digest for free to stay updated on the latest market trends and investment opportunities.