Almost three decades on, his Viking Holdings Ltd. is among the world’s biggest luxury cruise operators, and Hagen’s fortune will surpass $5 billion as the company completes its initial public offering in New York.

Viking raised $1.54 billion from the oversubscribed share sale, showing that investors are willing to pour money into a sector that was decimated by the Covid pandemic and now is rebounding.

The shares priced near the top of the marketed range, according to a regulatory filing, valuing the company at around $10.4 billion. Hagen controls roughly half of the shares, making him the second-richest person in the industry after Carnival Corp. Chairman Micky Arison, according to the Bloomberg Billionaires Index.

The listing also marks the pinnacle of an endeavor that, in Hagen’s words, began with “two guys with two mobile phones and four river ships” seeking to woo customers who sought “more than just a vacation.” As the 81-year-old chief executive officer has often told journalists: Viking cruises are for the thinking person, not the drinking person.

Viking representatives didn’t respond to requests for comment on Bloomberg’s calculation of Hagen’s fortune.

Physics Degree

Born near Oslo, Hagen earned a degree in physics from the Norwegian Institute of Technology and an MBA from Harvard University. After a stint in management consulting, he entered the cruise industry in the 1970s. Around two decades later, following multiple failed attempts to help buy or otherwise take control over cruise lines with different investor groups, Hagen led the purchase of the four river ships and formed Viking.

The company initially focused on cruises along rivers up and down Europe before expanding into ocean travel and special expeditions to places like Antarctica and the US Great Lakes. Based in Bermuda, Viking today operates 92 vessels and employs more than 10,000 people. 

Its target customers: affluent English speakers aged 55 or older, with time and money to explore the world. Last year, 90% of its clients came from North America, according to the company’s registration statement. In the US, the 55-plus cohort holds around three-quarters of the country’s household wealth, Federal Reserve data show. 

In recent years, Viking has sold stakes to the Canada Pension Plan Investment Board and alternative-asset manager TPG Inc. Both offloaded more shares in the offering than initially anticipated, according to a filing.

Read More: TPG, CPPIB Are Said to Weigh Offering More Shares in Viking IPO

Hagen didn’t sell stock. His daughter, Karine, who has been working for Viking since it was founded and is now executive vice president, will control a small stake of less than 1%.

Viking said proceeds from the offering will be used to “increase our capitalization and financial flexibility” given its “substantial indebtedness.” It had $5.4 billion of debt at the end of 2023.

In a letter to shareholders included in the registration statement, Hagen noted the company sees big growth potential among consumers in China and elsewhere around Asia. That would go beyond “China Outbound,” the cruise offering in Europe with full crews of Mandarin speakers that Viking launched in 2016. The firm is also exploring safaris and land tours.

“We view Viking as the premier provider of travel experiences for thinking people,” the billionaire wrote in the letter. “We do not try to be all things to all people.”