Fundraiser could seek $100m as Israeli operator seeks access to public equity markets
Zim Integrated Shipping Services has filed papers to launch
an initial public offering in New York, in a bid to make good on long mooted
plans to go public.
The Israeli containership operator aims to list its shares
on the New York Stock Exchange, where it will trade under ticker symbol ZIM, in
a move that, if successful, would break a long absence of shipping IPOs on US
capital markets.
The Haifa-based company did not give a timing for the IPO
but pencilled in the aggregate value for the potential share sale at $100m.
Zim said that the main goal of the effort is to add to
working capital and to create a public market for its shares, which would allow
it to access equity markets in the future.
"We intend to use the net proceeds from this offering
to support long-term growth initiatives, including investing in vessels,
containers and other digital initiatives, to strengthen our capital structure,
to foster financial flexibility and for general corporate purposes," the
outfit said in a draft prospectus.
The effort is backed by banks Citigroup, Goldman Sachs and
Barclays as global coordinators, with Jefferies and Clarksons Platou Securities
on board as join bookrunners for the offering, according to the document.
A listing in New York would make Zim the second container
liner operator listed on US stock markets, alongside Hawaii's Matson.
International profile
Unlike Matson, which owns its vessels and is mostly focused
on protected US trades, Zim brings a mostly chartered-in fleet and a global
profile. It is
ranked as the 10th largest operator by aggregate fleet capacity.
Eli Glickman-led Zim, which
recorded a record profit in the third quarter amid booming box rates,
had made no secret of its intentions to go public. The
company was reportedly eyeing London and New York as potential locations for a
listing, apparently choosing latter.
"We are 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 maximise our market position
and profitability," Zim said in the draft prospectus filed with the US
Securities and exchange commission.
The company owns just one vessel, with its remaining 69
vessels brought in through charter deals, the IPO papers show.
Zim operates 66 weekly lines serving 310 ports in 80
countries. The company, which carried 2.82m teu in cargo last year, has an
aggregate fleet capacity of 359,000 teu.
In its prospectus, the company highlighted that it builds
its service network selectively, focusing on niche trades, but is supplemented
through a strategic cooperation of the 2M Alliance, which is made up of titans
AP Moller-Maersk and Mediterranean Shipping Co.
"Our cooperation agreement with the 2M Alliance allows
us to 'partner-to-play' at scale with greater stability in our trade routes
that originate out of Asia by providing more competitive slot costs, new ports
of call and superior transit times," Zim said.
The company's largest shareholder is Idan Ofer's Kenon
Holdings, which holds a 32% slice. Deutsche Bank owns 16.7% of Zim's shares,
while Greek containership owner Danaos holds 10.2%.(Copyright)
TradeWinds — 01 Jan 2021