Why Norwegian Cruise Line’s Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Norwegian Cruise Line Holdings (NASDAQ: NCLH  ) jumped as much as 34%, after its IPO this morning.

So what: Norwegian priced shares at $19, after initially planning to go public at $16 to $18 per share. The company will use the $447 million raised in the offering to pay down debt.  

Now what: This kind of pop is not unexpected when a stock IPOs, so I wouldn't read too much into the movement. Only about 12% of the company's shares were sold in the offering, and it's likely that private equity owners Apollo Global and TPG will be looking to sell in the future --  so I wouldn't expect shares to skyrocket from here. Accordinng to Bloomberg, the enterprise value of Norwegian at the IPO price was about 12, in line with Carnival, so upside after today's pop may be limited.

Interested in more info on Norwegian Cruise Line Holdings? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2204946, ~/Articles/ArticleHandler.aspx, 12/20/2014 7:30:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement