ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) saw its share price fall sharply last week on concerns that a world slowdown will hit demand for shipping.
The Israeli shipping company's share price closed at the end of last week on Wall Street at $52.13, giving a market cap of $6.25 billion, after starting the week at $68.21. Most of the fall of 23% over the week came after the OECD cut its 2022 forecast for world growth from 4.5% to 3% on Wednesday.
Despite last week's steep decline, and the fact that ZIM's share price is well below its peak in mid-March of $89.30, which gave a market cap of $10.6 billion, the shipping company has still produced huge returns for investors since its IPO in January 2021, with a share price of just $15, and company valuation of $1.75 billion.
In 2021, ZIM reported the largest ever annual net profit achieved by an Israeli company of $4.65 billion, compared with $524 million in 2020, and paid out the biggest ever dividend of $2.04 billion, or $17.00 per share, representing 50% of 2021 net income on a cumulative basis.
Published by Globes, Israel business news - en.globes.co.il - on June 12, 2022.
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