Israeli shipping company ZIM Integrated Shipping Services has notified the U.S. Securities and Exchange Commission of its intention for an initial public offering of its ordinary shares on the New York Stock Exchange amid the red hot liner shipping market.
The company filed a Registration Statement with the SEC on December 31. In the filing, ZIM describes itself as a “global, asset-light container liner shipping company with leadership positions in niche markets where we believe we have distinct competitive advantages that allow us to maximize our market position and profitability.”
ZIM’s IPO interest comes amid renewed focus on the container liner shipping sector amid the global rebound from the COVID-19 shutdowns. According to ZIM, nearly 40% of its operations by TEU capacity are in the transpacific trade, which has seen freight rates surge in recent months as U.S. imports have soared to new highs.
As of September 30, 2020, ZIM operated a fleet of 70 vessels, more than 98% of which were chartered in. The company operated a global network of 66 weekly lines, calling at 310 ports in more than 80 countries. It also participates in a strategic collaboration with the 2M Alliance comprised of Maersk and MSC Mediterranean Shipping Company. During the same period, ZIM reported net income of $158 million on $2.6 billion in revenues.
The amount of ordinary shares to be offered and price per share have not been determined.
If successful, ZIM’s IPO will be the first U.S. initial public offering in the shipping sector since Gener8 Maritime IPO’d 2015.
Discussion about this post