Zim publishes prospectus for NYSE IPO

Eli Glickman

The Israeli shipping company reportedly plans to raise up to $500 million at the end of January, at a company valuation of $1.5 billion, before money.

Zim Integrated Shipping Services Ltd. has published a prospectus ahead of an initial public offering (IPO) on the New York Stock Exchange. Market sources believe that the Israeli shipping company will try to raise between $300 million and $500 million at a company valuation of $1.5 billion, before money. Zim's CEO is Eli Glickman.

Zim is believed to be working with Goldman Sachs, Barclays, Citi, and Jefferies to lead the IPO, which is planned for the end of January.

Earlier this year, Zim first reported that it was planning an IPO and several months ago it repeated its intention in an announcement about the early repaying of $55 million in debt.

Zim's most recent financial results have been positive with revenue of $1 billion in the third quarter of 2020, up 20% from the corresponding quarter of 2019, and net profit of $142 million, up from just $4 million in the corresponding quarter of 2019.

Kenon Holdings (NYSE: KEN; TASE: KEN), controlled by Idan Ofer, has a 30% stake in Zim. The banks also have a major stake as well as bondholders. In the past Zim has carried out debt settlements. The first was in 2009 following the financial crisis when the shipping company was mired in $7 billion worth of debt and the second was in 2014, when the company implemented a more than 50% haircut, chopping its debt to bondholders in Tel Aviv from $3.4 billion to $1.4 billion.

Published by Globes, Israel business news - en.globes.co.il - on December 31, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Eli Glickman
Eli Glickman
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