Iceland's Blue Lagoon seeks $115M in IPO to fund tourism expansion: FT

Iceland's Blue Lagoon geothermal spa operator plans to raise €100 million ($115 million) through a November initial public offering on the Reykjavik stock exchange, capitalizing on growing international demand for wellness tourism.

The company, valued at approximately €600 million in two transactions this summer, intends to finance new resorts and expand its tourism operations, according to the Financial Times, which interviewed Chief Executive Sigríður Margrét Oddsdóttir and founder Grímur Sæmundsen.

For investors, the offering presents an opportunity to gain exposure to Iceland's expanding tourism industry, although volcanic activity, seasonal demand and substantial capital expenditures present risks to future earnings.

Blue Lagoon expects annual revenue of €174 million and operating profit of €41 million, according to financial projections disclosed to investors.

Its expansion plans include a €130 million mountain resort scheduled to open in 2028 and a glacier retreat targeted for 2029 through 2031.

The company also plans to acquire Arctic Adventures, subject to regulatory approval. The acquisition would add approximately €90 million in annual revenue and €18 million in operating profit.

Iceland's tourism industry has expanded dramatically since 2010, with annual international arrivals reaching approximately 2.3 million. More than one-third of visitors to the country reportedly visit Blue Lagoon.

However, the company's proximity to an active volcanic region remains a concern. Eruptions forced temporary closures in 2023 and 2024, disrupting an earlier attempt to go public.

Management said newly constructed protective barriers will help reduce future disruptions.

Blue Lagoon would become Iceland's only publicly traded tourism company, offering investors a direct stake in the country's growing appeal as a year-round destination.