Cruise Lines Traded on the New York Stock Exchange | Wilnesh News

Viking Cruises is not your typical cruise operator.

You won’t find any kids on its smaller, upscale boats. In fact, cruise lines make no secret of the fact that they are targeting high-income baby boomers.

casino? Not on these cruise ships.

In Virgin Holdings’ prospectus, the company said its cruises are for “thinking people,” emphasizing its efforts to attract travelers seeking adventure and new experiences.

“They have the money, they have the time, and I believe that the moment you try to do everything for everyone, you know what happens? You don’t get anything done. So our focus is very, very clear,” the CEO Torstein Hagen, chairman of Viking, told CNBC.

The luxury cruise company launched its IPO on the New York Stock Exchange on Wednesday, targeting a valuation of $10.4 billion, becoming a successor to the royal caribbean and carnival. norwegian cruise line It is the fourth largest. Viking began trading Wednesday at $24 per share under the ticker symbol “VIK.”

Viking expanded its IPO after existing shareholders decided to sell an additional 9 million shares amid strong demand from mutual fund investors, people familiar with the matter said.

In 1997, Viking had four ships. The company’s fleet has rapidly expanded to 92 vessels, 80 of which are river vessels that sail along the world’s largest rivers, including France’s Seine and Egypt’s Nile.

“We’re different because when you talk about the big cruise lines, they’re huge in the Caribbean,” Hagen said. “We only have a small part in the Caribbean. The rest is Europe.”

The timing of Viking Cruises’ IPO coincides with a strong rebound in cruise bookings. April 25, Royal Caribbean Improve guidance In 2024, the industry has a bright future.

“Cruises have really come to the forefront as a competitive travel option,” Royal Caribbean CEO Jason Liberty said in a recent interview with CNBC. “The scale of the entire travel industry It’s $1.9 trillion. The cruise industry is $56 billion. I think the level of the cruise industry is very different from before the pandemic.”

Although the company’s prospectus showed Viking generating sales of $4.71 billion in 2023, the company did report a net loss for the year. Investors are excited that the company’s revenue per passenger is $7,251, much higher than any other publicly traded cruise line. Viking’s high price points allow it to make more money per customer.

Investors will also be looking for details on Viking’s expansion plans. Earlier this month, Norwegian Cruise Line said it had ordered eight new ships for delivery over the next 12 years.

Carnival, Royal Caribbean and MSC Cruises all have strong product portfolios, raising concerns about excess capacity affecting demand. But for now, the industry’s focus is on demand rebounding from the pandemic and the fact that even with higher prices, cruise travel remains cheaper on average than a hotel vacation.

UBS leisure analyst Robin Farley said land-based hotel prices are up 25% from 2019.

“There’s a huge gap between cruise ships and hotels. That makes cruise ships very attractive right now,” Farley said.