Viking IPO

[mauibabes]

So the real question two weeks into the IPO date, what is the value of being a Shareholder and how many shares does it take?  SBC based on length of cruise or what?

Thanks for the info in advance.

Mauibabes

[CurlerRob]

46 minutes ago, mauibabes said:

So the real question two weeks into the IPO date, what is the value of being a Shareholder and how many shares does it take?  SBC based on length of cruise or what?

Thanks for the info in advance.

Mauibabes

 

Nothing but speculation at present. In the past, Viking has chosen to avoid the loyalty program kool-aid, so it would not surprise me if they passed on this as well.

 

One hopes the "value of being a shareholder" would be provided by the stock itself. Time will tell on that. 🍺🥌

[mauibabes]

@CurlerRob

Thanks because I could not find anything within Investor Relations or elsewhere. I think you are right as they will have to see what life is like as a publicly traded company and what it may take to entice people to become cruisers as well as stockholders. They have entered a new ballgame and will go through the growing pains. 
Mauibabes

[CurlerRob]

22 minutes ago, mauibabes said:

@CurlerRob

Thanks because I could not find anything within Investor Relations or elsewhere. I think you are right as they will have to see what life is like as a publicly traded company and what it may take to entice people to become cruisers as well as stockholders. They have entered a new ballgame and will go through the growing pains. 
Mauibabes

 

You're quite welcome.

 

There's been a fair bit of speculation on this thread about the "new ballgame" and it's potential impact on the firm - many expressing trepidation. Personally, I'm far from persuaded that the IPO will necessarily cause noticeable change. 

 

Viking had two major shareholders (23% ownership) prior to the IPO - neither of them were shrinking violets about expressing their opinions, but there was no indication that they influenced the corp. direction to any strong degree. As well, I have yet to determine the level of ownership that the Hagen family retains. It's one thing to be publicly traded, it's wholly different if you are still the controlling shareholder. Cheers! 🍺🥌

[LindaS272]

16 minutes ago, CurlerRob said:

 

You're quite welcome.

 

There's been a fair bit of speculation on this thread about the "new ballgame" and it's potential impact on the firm - many expressing trepidation. Personally, I'm far from persuaded that the IPO will necessarily cause noticeable change. 

 

Viking had two major shareholders (23% ownership) prior to the IPO - neither of them were shrinking violets about expressing their opinions, but there was no indication that they influenced the corp. direction to any strong degree. As well, I have yet to determine the level of ownership that the Hagen family retains. It's one thing to be publicly traded, it's wholly different if you are still the controlling shareholder. Cheers! 🍺🥌

See the video at post #124. Tor says he owns over 50% of the company.

[OneSixtyToOne]

23 minutes ago, CurlerRob said:

I have yet to determine the level of ownership that the Hagen family retains

He has stated publicly he personally owns over 50% of the shares.

https://www.cnbc.com/video/2024/05/01/short-viking-ceo-on-ipo-very-different-from-other-cruise-companies.html

[KBs mum]

19 hours ago, OneSixtyToOne said:

He has stated publicly he personally owns over 50% of the shares.

https://www.cnbc.com/video/2024/05/01/short-viking-ceo-on-ipo-very-different-from-other-cruise-companies.html

He owned or controled 75% of Viking UK prior to the stock float 

[Mike07]

Keep in mind, TH was born in 1943 per Wikipedia. In all likelihood, his daughter will continue what her father started, but once the company changes hands, anything can happen.

 

Though as others have noted, being publicly traded isn't necessarily the death knell. Near peers like Oceania and superior peers like RSSC are owned by NCL (a product most readers here would not be interested in).

[OnTheJourney]

On 5/19/2024 at 8:42 PM, Cienfuegos said:

would have been for somebody to shoot down the Wright Flyer in 1903...

Well, then at least maybe Glenn Curtiss would have had his crack at all the fame! Wright Bros. were ruthless in trying to establish a monopoly on aircraft production. Unable to gain complete dominance, though, the company adapted a legal strategy. It would sue other aviators and firms, including Curtiss, in a bid to collect licensing expenses. Holding the patent meant that no entity could copy the Wrights’ design without their permission and without paying fees. I didn't realize any of this until visiting the Curtiss museum in Hammondsport, NY last month while we were there to hopefully see the eclipse. It was a long drawn-out battle between Curtiss and the Wrights. The family even blamed Curtiss' stubbornness as a cause of Wilbur's illness that led to his death. But, several years later the two companies merged into one corporation. Fascinating story. The museum shows an hour-long film about it.

[FetaCheese]

From Sea Trade Cruise News:  Viking Earnings Call

 

https://www.seatrade-cruise.com/finance/viking-continues-contrarian-no-guidance-nor-striving-investment-grade?utm_campaign=SC_News_Seatrade Cruise News Weekly Update_NL_05312024&utm_emailname=SC_News_Seatrade Cruise News Weekly Update_NL_05312024&utm_medium=email&utm_source=eloqua&utm_MDMContactID=9d5bd72d-7f4c-4493-b015-48013d5850ea&utm_campaigntype=Newsletter&eM=aa701701123f0394af13ba72c3450f5afc29342d5a552fc03cb711122d86b6d0&eventSeriesCode=ES_SEATRDCRSCTNT&eventEditionCode=MTM00SCC&sessionCode=S_STRDCRSNEWS&sp_eh=aa701701123f0394af13ba72c3450f5afc29342d5a552fc03cb711122d86b6d0

[Baron Barracuda]

Read through the VIK 1q earnings release.  While it speaks of stronger bookings and higher margins for the quarter what struck me was the operating loss of $90MM and overall loss of almost $500MM (which included some one time IPO related costs).  More strikingly the balance sheet shows total assets of $8.8B vs liabilities of $14.6B (debt$9.8B, customer deposits $4.0B) and stockholders equity of negative $5.8B.   As a Viking customer I'm a big fan however it's hard to make a case for owning the stock.

Edited May 31 by Baron Barracuda

[rmalbers]

Ya, I guess that's 'highly leveraged'.   Having said that, I started a very small position, just for the fun of it.  No matter what happens, it won't affect my bottom line.  I haven't found what the interest rate is on their debt and when it has to be refinanced.

Edited May 31 by rmalbers

[OnTheJourney]

$31.41 today. 9% gain on it since I bought it at slightly under $28 beginning of May. See where it goes from here.

Edited June 1 by OnTheJourney

[Clay Clayton]

Looks like Hagen was telling the truth about his ownership😁

 

https://www.seatrade-cruise.com/finance-legal-regulatory/how-vikings-post-ipo-ownership-shakes-out?utm_campaign=SC_News_Seatrade Cruise News Weekly Update_NL_06112024&utm_emailname=SC_News_Seatrade Cruise News Weekly Update_NL_06112024&utm_medium=email&utm_source=eloqua&utm_MDMContactID=db60c4e4-0afe-4832-ad88-83806cef368f&utm_campaigntype=Newsletter&eM=fe6114d63ee1af637c116a68ad60731963dbb02f790981a727f86217fc60c39d&eventSeriesCode=ES_SEATRDCRSCTNT&eventEditionCode=MTM00SCC&sessionCode=S_STRDCRSNEWS&sp_eh=fe6114d63ee1af637c116a68ad60731963dbb02f790981a727f86217fc60c39d

[CurlerRob]

31 minutes ago, Clay Clayton said:

Looks like Hagen was telling the truth about his ownership😁

 

https://www.seatrade-cruise.com/finance-legal-regulatory/how-vikings-post-ipo-ownership-shakes-out?utm_campaign=SC_News_Seatrade Cruise News Weekly Update_NL_06112024&utm_emailname=SC_News_Seatrade Cruise News Weekly Update_NL_06112024&utm_medium=email&utm_source=eloqua&utm_MDMContactID=db60c4e4-0afe-4832-ad88-83806cef368f&utm_campaigntype=Newsletter&eM=fe6114d63ee1af637c116a68ad60731963dbb02f790981a727f86217fc60c39d&eventSeriesCode=ES_SEATRDCRSCTNT&eventEditionCode=MTM00SCC&sessionCode=S_STRDCRSNEWS&sp_eh=fe6114d63ee1af637c116a68ad60731963dbb02f790981a727f86217fc60c39d

 

Thanks Clay.

 

I note the family retains 87% of the voting rights - basically no change in governance. Hopefully, this should reassure those who seemed to equate an IPO with an automatic decline in service quality. 🍺🥌

[Clay Clayton]

1 hour ago, CurlerRob said:

 

Thanks Clay.

 

I note the family retains 87% of the voting rights - basically no change in governance. Hopefully, this should reassure those who seemed to equate an IPO with an automatic decline in service quality. 🍺🥌

My thoughts (hopes) exactly. 

[KBs mum]

3 hours ago, CurlerRob said:

 

Thanks Clay.

 

I note the family retains 87% of the voting rights - basically no change in governance. Hopefully, this should reassure those who seemed to equate an IPO with an automatic decline in service quality. 🍺🥌

It's 75% of Viking UK, or was before the float

[Cienfuegos]

8 hours ago, KBs mum said:

It's 75% of Viking UK, or was before the float

My understanding is Viking (the publicly traded company) owns various share totals of the subsidiary companies (River, Ocean, US river, Viking UK, China, etc), with the parent controlling them. The Hagen family controls the parent.

 

That structure should allow the parent to avoid disaster if something happens in one of the subs. There's likely enough insulation to protect the family's interests.

 

 

[Hanoj]

14 hours ago, Cienfuegos said:

My understanding is Viking (the publicly traded company) owns various share totals of the subsidiary companies (River, Ocean, US river, Viking UK, China, etc), with the parent controlling them. The Hagen family controls the parent.

 

That structure should allow the parent to avoid disaster if something happens in one of the subs. There's likely enough insulation to protect the family's interests.

 

 

 

Are the subsidiaries wholly owned? I haven't delved into the SEC filings.

[Mike07]

4 minutes ago, Hanoj said:

 

Are the subsidiaries wholly owned? I haven't delved into the SEC filings.

 

 

They definitely can't with China.

[Cienfuegos]

On 6/13/2024 at 12:17 PM, Hanoj said:

 

Are the subsidiaries wholly owned? I haven't delved into the SEC filings.

 

I concur with Mike07 on China, and I believe there are minority holders in some of the others.  I am not currently  invested in Viking, so I haven't taken apart the financials and mapped the ownership.

[Mike07]

23 minutes ago, Cienfuegos said:

 

I concur with Mike07 on China, and I believe there are minority holders in some of the others.  I am not currently  invested in Viking, so I haven't taken apart the financials and mapped the ownership.

 

 

My only comment in China is that anybody looking to do business in China has to go in with a Chinese partner and said partner has to have 50% + 1 controlling interest of the company.

 

I wouldn't be surprised if other countries have similar rules.