Zim raises US$218m in Wall Street IPO, falls short of target
ISRAEL-BASED global container company Zim Integrated Shipping Services Ltd has raised US$218 million in its initial public offering (IPO) on the New York Stock Exchange (NYSE)
01 February 2021 - 19:00
The company sold 14.5 million ordinary shares at a price of $15.00 per ordinary share, below the price range of $16-$19 per share cited by the company earlier when it announced terms.
Zim has granted the underwriters a 30-day option to purchase up to an additional 2.175 million shares at the initial public offering price. If these options are taken up, then the amount raised by Zim will rise to $250 million. The company valuation of $1.78 billion, after money, is disappointingly below last week's estimates of a company valuation of between $1.9 billion and $2.3 billion but above expectations over the past few months of a $1.5 billion valuation.
Citigroup, Goldman Sachs & Co and Barclays acted as global coordinators in the offering and Jefferies and Clarksons Platou Securities were joint bookrunners.
Having improved its financial results with CEO Eli Glickman at the helm, the company has taken advantage of the market boom.
The offering did not include offers for sale by existing shareholders. Zim's biggest shareholder is Kenon Holdings, which had a 32 per cent stake in Zim that has been diluted to 27.2 per cent. Deutsche Bank had a 15.7 per cent stake in the shipping line, diluted to 13.4 per cent, and Danaos Corporation had a 10.2 per cent stake, diluted to 8.7 per cent. The State of Israel holds a golden share, which prevents Kenon from selling its holdings to third parties, reports Israel's Globe.
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