Norwegian Cruise Line expresses plans of a large public stock offering

Written by: Wajeeh Khan
March 5, 2021
  • Norwegian Cruise Line expresses plans of a large public stock offering.
  • The cruise operator said it will sell 47.58 million shares at £21.68 each.
  • The offer represents an 8.8% discount on Thursday’s closing price.

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) expressed plans of another offering on Friday that sent its shares up 10% in the morning session. The cruise operator said it will sell 47.58 million shares at £21.68 each.

Norwegian Cruise Line’s shares opened at a per-share price of £21.86 on Friday and closed the regular session at £20.82 per share. The stock remained almost flat in extended trading. In comparison, Norwegian had started the year 2021 at £17.15 per share. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.

The offer represents an 8.8% discount on Thursday’s closing price

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The announced price represents an 8.8% discount on the price at which its shares closed the regular session in the stock market on Thursday. The offer, as per Norwegian Cruise Line, constitutes 15.1% of the outstanding shares as of 16th February.  

The Miami-headquartered company also said on Friday that the money raised from this large public stock offering will be used to buyback all of the exchangeable senior notes of its subsidiary, NCL Corp, due 2026. The remaining proceeds, Norwegian added, will be dedicated for general corporate purposes.

In separate news from the United States, sources confirmed on Friday that the financial services company, Robinhood Markets Inc., have picked the Nasdaq Stock Exchange for its initial public offering (IPO).

Norwegian’s cruises to remain suspended until 31st May

Norwegian reaffirmed on Friday that its cruises are likely to remain suspended until 31st May due to the ongoing Coronavirus pandemic that has so far infected more than 110 million people worldwide and caused over 2.5 million deaths.

In related news, the world’s 3rd largest cruise line said on Friday that it will launch an empowerment programme to commemorate the 110th International Women’s Day. The programme, it highlighted, was likely to span over a month.

The cruise operator named Goldman Sachs as the sole underwriter for its announced public offering on Friday. Norwegian announcement comes a day after the American multinational retailer, Costco Wholesale published its financial results for the fiscal second quarter.

Norwegian Cruise Line Holdings performed largely downbeat in the stock market last year with an annual decline of close to 55%. At the time of writing, the cruise line that was founded in 1966, has a market cap of £6.58 billion.