Viking Said to Have Filed for IPO

[Host Jazzbeau]

New article on Cruise Industry News:

Viking Said to Have Filed for IPO

[CILCIANRQTS]

This will force them to go public with their financial statements.

It’ll be interesting to see how much cash they hemorrhaged during covid.

[Peregrina651]

New article doesn't say anything more than the first article said-- and most of it seems to be guess work and extrapolation based on public knowledge.

Edited February 26 by Peregrina651

[KBs mum]

On 2/24/2024 at 10:51 PM, CILCIANRQTS said:

This will force them to go public with their financial statements.

It’ll be interesting to see how much cash they hemorrhaged during covid.

And for an aggressive expansion while degrading their USP and trying to maintain high prices with a no longer industry leading product. We got the impression they are chasing the mass market crowd, rather than maintaining the 'quiet 5*' ambience 

This isn't the first time they've needed a cas injection, and Hagen only controls 75% of Viking UK now (the accounts are on the Companies House website) 

The droughts are likely not helping the river fleet, expansion now means they usually raft moor now, sometimes an hour outside the town

[Cienfuegos]

I'm interested in how the Chinese investment interacts with Viking corporate. One ship was handed over to settle all or part of obligations, and it seems the Chinese river operations may have participation from local interests.

 

My sense is that there's a Viking corporate (Mr Hagen and family, perhaps senior managers) which oversees several subsidiary corporations (Ocean, River, China, US rivers, UK,  Australia, maybe expeditions, etc) which have their own outstanding mortgages and other debt, etc

Edited February 26 by Cienfuegos

[Baron Barracuda]

Read in a news piece a while back that VO is looking to double size of fleet, adding 10 new ships and VR is looking to add 16.  Article said the first 4 VO are on order at a cost of around $1.3B.  So total cost for all 26 VO & VR is likely $4B - $5B.  That's a lot of new debt to add.  Makes a $500MM IPO a drop in the bucket.

[Peregrina651]

Agreed. Drop in the bucket. But I'd buy 100 shares, especially if it comes with some sort of investors' onboard bonus, just to say I own it.

Edited February 26 by Peregrina651

[CILCIANRQTS]

1 hour ago, Baron Barracuda said:

Read in a news piece a while back that VO is looking to double size of fleet, adding 10 new ships and VR is looking to add 16.  Article said the first 4 VO are on order at a cost of around $1.3B.  So total cost for all 26 VO & VR is likely $4B - $5B.  That's a lot of new debt to add.  Makes a $500MM IPO a drop in the bucket.

And, as holders of equity rather than debt, you go to the end of the line for getting any distributions. Perhaps not the best investment.

[Peregrina651]

If the company goes under.

[Cienfuegos]

A "small" initial share offering is often used to test the waters for a subsequent larger offering, and to allow managers etc who have received private or restricted shares to cash out in the open market.

 

Depending on the terms of the distribution of restricted or private shares to managers, the company might otherwise have to spend its own cash to redeem those shares if there was no existing public market

 

 

[Mike07]

Difficult to see how Viking going public will make for a better cruise experience. 😕

 

I like how they don't push beverage packages and don't care if you bring a bottle onboard. Truth be told, I don't even bring bottles on board to begin with, but it's a nice option to have :(.

[dlh015]

36 minutes ago, Mike07 said:

Difficult to see how Viking going public will make for a better cruise experience.

Exactly what I thought when I first saw this thread.

 

Which saddens me as we just booked our first VO (for November next year!) and now I fear for a diluted experience. But, hey, not about to cancel on speculation...I remain hopeful it will still be a worthwhile experience.

[chipmaster]

We took our first viking after sampling so many other lines.  As to the value that is one debate versus the mainstream line, but wouldn't hesitate to make this our 1st choice for a SO only cruise.    

 

As to the merits of a public versus private.  I can't see this will make the experience any better on ship.  If anything the need to report quarterly finances can't be a good thing fundamentally.  

 

On our cruise we were told how wonderful the crew retention rate was > 97% was the number claimed.  I can't imagine this going up once they are a public company!

[Selion]

12 hours ago, Mike07 said:

Difficult to see how Viking going public will make for a better cruise experience. 😕

Regent Seven Seas is part of NCLH, which is a public company.  In contrast to NCL, RSS hasn't been in the YT cruise news after the pandemic with service cuts.  Let's hope Viking stays true to what made them successful in the first place.

[Peregrina651]

Mr. Hagen is not going to live forever.  There will be changes in how the company is run in the future regardless of an IPO. 

 

Whether future management can sustain the success of the company and stick to the vision of its founder is the stuff of crystal balls -- and will have a much bigger impact on the future of the company than the small IPO that has supposedly been proposed.  

 

An IPO at this point is a minor distraction when the big concern for the future of the company is management after Mr. Hagen. 

 

Edited February 27 by Peregrina651

[sharkster77]

I envision daughter Karine Hagen, who is the face of the company in ads (along with her father), attempting to continue her father's successes after he is gone.  She must own a chunk of the company, I would think.

[S4POPO]

8 hours ago, Selion said:

Regent Seven Seas is part of NCLH, which is a public company.  In contrast to NCL, RSS hasn't been in the YT cruise news after the pandemic with service cuts.  Let's hope Viking stays true to what made them successful in the first place.

Apologize for my ignorance, but what does YT stand for?

[millybess]

19 minutes ago, S4POPO said:

Apologize for my ignorance, but what does YT stand for?

I'm guessing "You Tube".  

[S4POPO]

Ahhh, feel like an idiot!  I'm getting too old. lol

[millybess]

2 minutes ago, S4POPO said:

Ahhh, feel like an idiot!  I'm getting too old. lol

LOL.  It was just a guess.  I'm expecting someone to come along and correct me anytime now.  😉