LOS ANGELES - Viking Holdings Ltd (NYSE: VIK), a global travel company, disclosed today the initiation of a secondary public offering involving 30 million ordinary shares held by certain existing shareholders. The offering, which is yet to be priced, will not provide any capital to the company itself, as all proceeds will go to the selling shareholders.
The sellers have also offered underwriters a 30-day option to purchase up to an additional 4.5 million shares. Leading the underwriting syndicate are BofA Securities and J.P. Morgan, with UBS Investment Bank and Wells Fargo (NYSE:WFC) Securities also serving as book runners.
The offering is subject to market conditions and other factors, with the shares being offered via a prospectus available through specific requests to the leading underwriters. The completion of the offering hinges on the effectiveness of a registration statement filed with the U.S. Securities and Exchange Commission (SEC), which at this point has not been declared effective.
The company has cautioned that this announcement does not constitute a sales offer or a solicitation of an offer to buy the securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such state or jurisdiction.
Viking Holdings, founded in 1997, is known for its destination-focused travel experiences on rivers, oceans, and lakes, catering to travelers with interests in science, history, culture, and cuisine.
The press release includes forward-looking statements, which are based on current expectations and projections about future events. Viking Holdings has advised that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
This news is based on a press release statement from Viking Holdings Ltd.
In other recent news, Viking Holdings has seen positive financial results and analyst coverage. The company reported gross and net revenues of $718 million and $495 million, respectively. Operating losses were recorded at $70 million, a figure better than anticipated. In addition, Viking Holdings has announced a series of six new Asia itineraries for 2025, expanded its Nile River fleet with the introduction of Viking Hathor, and marked a significant step in its expansion strategy with the float out of Viking Vesta.
Wells Fargo has maintained an Overweight rating on Viking Holdings, and raised its price target to $39.00, citing a robust demand forecast and potential upside to the Street's estimates. Barclays (LON:BARC) initiated coverage with an Overweight rating, highlighting Viking's unique position in the cruise industry and potential for above-industry revenue growth. BTIG reaffirmed its Buy rating on Viking Holdings, while Stifel maintained its Buy rating, recognizing its strong financial performance. Other firms including JPMorgan (NYSE:JPM), Redburn-Atlantic, and UBS also initiated coverage with positive ratings. These are recent developments for Viking Holdings.
InvestingPro Insights
As Viking Holdings Ltd (NYSE: VIK) navigates through the initiation of its secondary public offering, investors and stakeholders might find the following insights from InvestingPro helpful in assessing the company's current financial health and future prospects.
InvestingPro data indicates that Viking Holdings operates with a market capitalization of approximately $13.98 billion. While the company has been operating without profitability over the last twelve months, analysts are optimistic about its future, forecasting profitability for this year. This is supported by recent upward revisions in earnings by three analysts for the upcoming period, a positive signal for potential investors. Additionally, Viking Holdings is recognized as a significant player in the Hotels, Restaurants & Leisure industry, which could imply a strong market position and brand value.
However, the company's short-term obligations currently exceed its liquid assets, which may raise concerns about its ability to meet immediate financial liabilities. This is a critical point for investors to consider, especially in the context of the secondary public offering. On a brighter note, the company's moderate level of debt could suggest a balanced approach to financing and risk management.
InvestingPro Tips highlight that Viking Holdings does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income streams from their investments. For more detailed analysis and additional InvestingPro Tips, interested parties can visit the dedicated page for Viking Holdings on InvestingPro, which features a total of 7 tips for a deeper dive into the company's financial nuances.
InvestingPro data further shows a 24.1% price total return over the past six months, indicating a robust medium-term performance in the stock market. This performance metric, along with a fair value estimate of $28.41 by InvestingPro, compared to analyst targets of $39, provides a range of valuation perspectives for investors to consider.
These insights are designed to give investors a comprehensive view of Viking Holdings' financial status and market position as they evaluate the potential impacts of the secondary public offering.
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