FILE PHOTO: Arnold Donald, CEO of Carnival Corp. takes the stage to give his keynote speech at the CES in Las Vegas, USA, 5 January 2017. REUTERS / Rick Wilking
(Reuters) – Carnival Corp announced on Monday it would sell $ 500 million of shares as the cruise operator resumes operations after a long hiatus due to the COVID-19 pandemic.
The money raised will be used to buy Carnival Plc common shares, which are traded in the UK, and for general corporate purposes, the company said.
The cruise operator raised over $ 2.5 billion by selling its shares last year as travel restrictions brought its business to a standstill due to the pandemic.
With cruises designed with fewer passengers on board while adhering to strict hygiene and disinfection protocols, Carnival and others are expected to burn more money to stay in business.
Cruise companies began sailing U.S. ports last week with mostly vaccinated passengers and crew.
The shares of Carnival and competitors Royal Caribbean Group and Norwegian Cruise Holdings Ltd lost approximately 2% each.
Reporting from Nivedita Balu in Bengaluru; Arrangement by Krishna Chandra Eluri
