Zim hires investment banks, mulls London IPO

Eli Glickman

Any offering of the Israeli shipping company is likely to be conducted at a company valuation of $750 million, or even more.

Zim Integrated Shipping Services Ltd. is considering an IPO overseas, probably London although New York is also a possibility. The option of a public offering or private placement has come into play following the publication of last week's positive financial results for the second quarter of 2020 and the need to strengthen the Israeli shipping company's capital base.

For the purpose of the capital raising, Zim has hired the services of three foreign investment banks - Zacks, Barclays and Citi. Any offering is likely to be conducted at a company valuation of $750 million, or even more for Zim.

Idan Ofer's Kenon Holdings Ltd. (NYSE: KEN; TASE: KEN) and various banks hold a 30% stake in Zim whose CEO is Eli Glickman and chairman is Aharon Fogel. The company's bonds are still traded.

In the second quarter of 2020, Zim reported revenue of $795 million, down 5% from the corresponding quarter of 2019, but net profit quintupled to $24 million in the second quarter.

Zim has implemented major debt settlements and restructuring since the financial crisis of 2008. In 2009, the Israeli shipping company rescheduled debts totaling $7 billion and in 2014, implemented a 50% haircut for its financial debt of $3.4 billion, of which $1.4 billion was for Tel Aviv Stock Exchange bondholders.

Published by Globes, Israel business news - en.globes.co.il - on August 24, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Eli Glickman
Eli Glickman
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