Zim files papers for initial stock offering on Wall Street
ISRAELI liner operator Zim has filed a preliminary prospectus with the US Securities Exchange Commission (SEC) for its long-anticipated initial public offering
04 January 2021 - 19:00
The container and logistics company plans to trade its shares on the New York Stock Exchange (NYSE), becoming only the second container line after Matson to be listed on the Big Board.
Terms of the offering are not included in a preliminary filing, which is submitted to the SEC for review and approval, but the Israeli news outlet Globes reports that Zim is aiming to raise between US$300 and $500 million in the offering, which would give the company a market value of $1.5 billion.
The offering, which is being led globally by Barclays, Goldman Sachs, and Citigroup, would provide Zim with funds to support long-term growth initiatives, reports the Maritime Executive, Fort Lauderdale, Florida.
The prospectus highlights that they do not have specific plans for the proceeds, but that its uses would include investing in vessels, containers, and other digital initiatives, strengthening the capital structure, fostering financial flexibility, or possibly to service or repay certain outstanding debt.
Zim has been openly discussing its goal of running an IPO for months. The company had taken several steps to improve its financials, including the early repayment of $55 million in debt in September. The timing of the offer, which is expected to be completed by late January, is seen as a move to leverage the strength of the global container and logistics markets.
Zim's most recent financial results show a strong performance with revenues up more than six per cent in the first nine months of 2020 to over $2.6 billion. The adjusted net profit for the first nine months of the year was nearly $176 million versus a $10 million loss in 2019.
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