Since publishing its financial report for 2021 last week, Zim Integrated Shipping Services Ltd. (NYSE: ZIM) share price has risen 25%. The company's share price is currently $89, giving a market cap of $10.6 billion - a return of almost 500% since its Wall Street IPO in January 2021.
Zim has overtaken Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and Amdocs Ltd. (Nasdaq: DOX) and is now the fifth most valuable Israeli company. Over the past two years, the company has benefitted in the boom in shipping services and huge demand worldwide including the global supply chain disruptions since the outbreak of the Covid pandemic, which has made it difficult for shipping companies to meet growing demand and pushed up prices.
In the fourth quarter of 2021, the average price per container was $3,630 and the annual average was $2,786, up 227% from 2020.
This led to Zim reporting a net profit of $4.6 billion in 2021, the biggest profit ever reported by an Israeli company and a nine-fold rise in profit from 2020. Zim CEO Eli Glickman said, "2021 was a phenomenal year. I admit that we never dreamt of reaching such profitability."
At a meeting that has been summoned, the shareholders will be asked to approve an allocation of 208,000 options to Glickman, while chairman Yair Seroussi would receive 27,000 options and the directors 13,000 options each. The options can be exercised for $68.73, 23% below the price that the shares are trading.
Published by Globes, Israel business news - en.globes.co.il - on March 17, 2022.
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