Skift Take
Cruises operators battered financially by the pandemic requirement to find ways to stay afloat so selling shares goes a long way in assisting them stay in company.
Rashaad Jorden
Carnival Corp said on Monday it would offer shares worth $500 million, as the cruise operator reboots its operations after a long break due to the COVID-19 pandemic.
Cash raised will be used to buy ordinary shares of Carnival Plc, trading in the United Kingdom, and for general business purposes, the company stated.
The cruise operator has actually raised over $2.5 billion by offering its shares over the past year as travel limitations due to the pandemic brought its company to a dead stop.
With cruises purchased to run with fewer passengers onboard while following stringent health and sanitization protocols, Carnival and others are expected to burn more money to stay in business.
Cruise operators started cruising from U.S. ports recently with mainly immunized guests and crew.
Shares of Carnival and peers Royal Caribbean Group, Norwegian Cruise Holdings Ltd were down about 2% each.
(Reporting by Nivedita Balu in Bengaluru; Modifying by Krishna Chandra Eluri)
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