Norwegian Cruise Lines IPO Leaves the Dock

Norwegian Sun Cruise ShipCruise ship operator Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) kicked off its initial public offering today. The firm priced 23.53 million shares at $19 a share, which was above the expected range of $16 to $18 a share.

Prior to today's IPO, Apollo Global Management LLC (NYSE: APO) and TPG Capital owned 50% of cruise operator. The other 50% owner was Hong Kong cruise operator Genting. After the IPO, the three firms will own 88% of Norwegian Cruise Lines. Based on the offering price, the newly public firm is valued at around $3.8 billion.

Net proceeds to the company will be about $447 million, which the company is expected to use to pay down its substantial debt. As of the end of September, Norwegian Cruise Lines held debt of $2.9 billion.

Shares are skyrocketing, now trading at $25.00, up nearly 29% on volume of more than 10 million.

Shares of competitors Carnival Corp. (NYSE: CCL) and Royal Caribbean Cruises Ltd. (NYSE: RCL) are up about 2% and 0.1%, respectively.


Filed under: 24/7 Wall St. Wire, IPOs, Services Tagged: CCL, NCLH, RCL
Read Full Story

Markets

NASDAQ 6,461.32 6.68 0.10%
S&P 500 2,506.65 6.42 0.26%
DJIA 22,370.80 39.45 0.18%
NIKKEI 225 20,310.46 11.08 0.05%
HANG SENG 28,099.00 47.59 0.17%
DAX 12,564.02 2.23 0.02%
USD (per EUR) 1.20 0.00 0.09%
USD (per CHF) 0.96 0.00 -0.23%
JPY (per USD) 111.40 -0.18 -0.16%
GBP (per USD) 1.35 0.00 0.04%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.