Viking Announces Pricing of its Secondary Offering

Rhea-AI Summary

Viking Holdings (NYSE: VIK) has announced the pricing of its secondary public offering of 30,000,000 ordinary shares at $31.00 per share. The selling shareholders are offering all shares and have granted underwriters a 30-day option to purchase up to an additional 4,500,000 shares. Viking will not receive any proceeds from the offering. The offering is expected to close on September 13, 2024.

Lead underwriters include BofA Securities, J.P. Morgan, UBS Investment Bank, and Wells Fargo Securities. HSBC and Morgan Stanley are acting as bookrunners, while Rothschild & Co, Stifel, Drexel Hamilton, , Loop Capital Markets , and R. Seelaus & Co., are co-managers. The offering will be made through a prospectus, with the registration statement declared effective on September 11, 2024.

Positive

• Large offering size of 30,000,000 shares indicates strong market demand
• Involvement of multiple prestigious underwriters suggests credibility
• Option for additional 4,500,000 shares provides flexibility for market demand

Negative

• Existing shareholders may face dilution due to large offering size
• Company not receiving any proceeds from the offering
• Potential downward pressure on stock price due to increased supply of shares

Insights

Financial Analyst

Viking's secondary offering of 30 million shares at $31 per share is a significant move, potentially raising $930 million for the selling shareholders. This large-scale offering could impact Viking's stock price and market perception. The option for an additional 4.5 million shares could further increase the offering's size to $1.07 billion.

The involvement of major underwriters like BofA Securities and J.P. Morgan lends credibility to the offering. However, it's important to note that Viking won't receive any proceeds, which may raise questions about the company's financial strategy and the motivations of the selling shareholders.

Investors should watch for potential stock price volatility and changes in ownership structure following this substantial offering. The timing and size of this secondary offering might also indicate the selling shareholders' view on Viking's current valuation.

Market Research Analyst

This secondary offering could significantly impact Viking's float and liquidity. With 30 million shares hitting the market, we might see increased trading volume and potentially lower volatility in Viking's stock price. However, the short-term impact could be negative as the market absorbs this large supply of shares.

The $31 pricing provides insight into how the market values Viking. It's essential to compare this to recent trading prices and analyze any discount or premium. The strong underwriter lineup suggests confidence in the offering's success, but investors should consider why existing shareholders are selling such a large stake.

This offering might also affect Viking's shareholder composition, potentially shifting from concentrated ownership to a more diverse investor base. This could influence future corporate governance and strategy decisions.

LOS ANGELES--(BUSINESS WIRE)-- Viking Holdings Ltd (NYSE: VIK) (“Viking”) today announced the pricing of its secondary public offering of an aggregate of 30,000,000 ordinary shares at a public offering price of $31.00 per share. The selling shareholders are offering 30,000,000 ordinary shares and have granted the underwriters a 30-day option to purchase up to an additional 4,500,000 ordinary shares at the public offering price, less underwriting discounts and commissions. The offering is expected to close on September 13, 2024, subject to customary closing conditions.

Viking is not offering any ordinary shares and will not receive any proceeds from the offering.

BofA Securities and J.P. Morgan (listed in alphabetical order) are acting as lead underwriters and representatives for the proposed offering. UBS Investment Bank and Wells Fargo Securities are also acting as lead book-running managers. HSBC and Morgan Stanley are acting as bookrunners for the proposed offering, and Rothschild & Co, Stifel, Drexel Hamilton, LLC, Loop Capital Markets LLC and R. Seelaus & Co., LLC are acting as co-managers for the proposed offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and was declared effective on September 11, 2024. The proposed offering will be made only by means of a prospectus, copies of which may be obtained, when available, from: BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, telephone: 1-800-294-1322, or email: dg.prospectus_requests@bofa.com; and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Special Note Regarding Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this press release, including among others, statements relating to Viking’s current expectations and views with respect to, among other things, the proposed offering. In some cases, forward-looking statements can be identified by the use of words such as “anticipates,” “estimates,” “expects,” “intends,” “plans” and “believes,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could.” These forward-looking statements are based on Viking’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict or which are beyond Viking’s control. You should not place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by us, or on our behalf. Our actual results may differ materially from those expressed in, or implied by, the forward-looking statements included in this press release as a result of various factors, including the risks discussed in Viking’s filings with the SEC, including the registration statement on Form F-1 related to the proposed offering, each of which is accessible on the SEC’s website at www.sec.gov.

Forward-looking statements speak only as of the date of this press release. Except as required by law, Viking assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

About Viking

Viking was founded in 1997 and provides destination-focused journeys on rivers, oceans and lakes around the world. Designed for curious travelers with interests in science, history, culture and cuisine, Viking offers experiences for The Thinking Person™.

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Investor Relations

Email: investorrelations@viking.com



Public Relations

Email: vikingpr@edelman.com

Source: Viking Holdings Ltd

FAQ

What is the price per share for Viking's (VIK) secondary offering?

Viking Holdings (NYSE: VIK) has priced its secondary public offering at $31.00 per ordinary share.

How many shares are being offered in Viking's (VIK) secondary offering?

Viking's secondary offering consists of 30,000,000 ordinary shares, with an option for underwriters to purchase an additional 4,500,000 shares.

When is the expected closing date for Viking's (VIK) secondary offering?

The secondary offering for Viking Holdings (NYSE: VIK) is expected to close on September 13, 2024, subject to customary closing conditions.

Will Viking (VIK) receive any proceeds from the secondary offering?

No, Viking Holdings (NYSE: VIK) will not receive any proceeds from the secondary offering as the shares are being sold by existing shareholders.