Viking Holdings, known for its river and ocean cruises, has announced its intention to go public with an initial public offering (IPO) on the New York Stock Exchange under the ticker symbol NYSE:VIK. The travel company, established in 1997, started with just four river vessels and has expanded to a fleet of 92 ships, offering journeys across the globe.
The company has experienced rapid growth, with its total number of guests, total revenue, net income, and Adjusted EBITDA growing at compound annual growth rates (CAGRs) of 10.1%, 14.4%, not measurable (NM), and 16.3%, respectively, from 2015 to 2023. Viking claims to have outpaced the overall cruise industry's growth, becoming a market leader in river cruising and luxury ocean cruising.
For the 2023 season, Viking reported holding a 51% market share in the North American outbound river market, 26% in luxury ocean cruising, 12% in Antarctic expeditions, and 20% in Mississippi river cruises. The company's expansion into various categories of cruising, including river, ocean, and expedition, has been a key driver of its growth.
The filing with the Securities and Exchange Commission indicates that BofA Securities, J.P. Morgan, UBS Investment Bank, and Wells Fargo (NYSE:WFC) Securities will act as the lead underwriters for the IPO.
The announcement of Viking Holdings' IPO comes at a time when the company has cemented its position in the travel industry through a focus on destination-focused and culturally immersive experiences. The company's growth narrative and market share statistics reflect a strategic expansion that has resonated with a growing customer base.
This news is based on a recent statement released in a press release.
InvestingPro Insights
Viking Holdings, amidst preparations for its IPO, presents a mixed financial landscape according to the latest data from InvestingPro. The company's market capitalization stands at a modest $4.23 million, reflecting its relatively small size in the financial markets. Notably, Viking Holdings has been trading at a low Price / Book multiple of 0.2 as of the last twelve months leading up to Q3 2023, suggesting that the market may be undervaluing the company's assets relative to its share price.
The financial data also highlights a significant revenue growth of 48.58% over the same period, which aligns with Viking's reported market share expansion and strategic growth in the cruising industry. However, this growth comes with caveats; the company has a negative P/E ratio of -1.74, indicating that it has not been profitable over the last twelve months as of Q3 2023. Additionally, Viking's gross profit margin stands at 15.04%, which could raise concerns about its profitability and efficiency in generating income from its sales.
Investors considering Viking Holdings' IPO should be aware of the company's financial performance and market valuation. Two notable InvestingPro Tips for Viking Holdings are: the company operates with a significant debt burden and is quickly burning through cash. These insights could be crucial for investors evaluating the risk profile of the company as it goes public.
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