In reporting a $590 million net income in the first quarter, Zim Integrated Shipping Services said it would expand its chartered fleet to handle what it expects will be 30 percent more volume in 2021 than in 2020.
Zim triples valuation since January IPO, strong Q1 results
Boosted by the sharp rise in freight rates, 2021 has been a dream year for the Israel-based global container company.
Israel-based global container company Zim Integrated Shipping Services Ltd. (NYSE: ZIM) has nearly tripled its value since its Wall Street IPO at the end of January, when it raised $218 million at $15 per share, at a company valuation of $1.75 billion. Boosted by a 76% rise in freight rates compared with the first quarter of 2020, the company s share price rose 1.68% on the NYSE yesterday to $41.70, giving a market cap of $4.8 billion. Following publication of its first quarter financial results, Zim s share price is up a further 3.12% in premarket trading.
PNW ports contend with vessel delays, longer container dwell times
| Feb 24, 2021 11:15AM EST
Pacific Northwest ports are contending with late vessel arrivals and increased container dwell times due to weather events and strong Asian import volumes.
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Zim charters 10 LNG container vessels
Korean-based Samsung Heavy Industries has been commissioned by Seaspan to build these vessels.
Zim Integrated Shipping Services Ltd. (NYSE: ZIM) has signed a strategic agreement with Atlas Corp. unit Seaspan Corporation for the long-term charter of ten 15,000 TEU liquefied natural gas (LNG) dual-fuel container vessels. The vessels will serve Zim s Asia - US East Coast trade.
Zim president and CEO Eli Glickman said, This is a milestone agreement for Zim, valued in excess of one billion dollars, which enables us to achieve two important strategic objectives. First, these top of the line advanced vessels will allow us to meet growing market demand on the Asia - US East Coast trade and provide top-level, reliable service to our customers on this important trade lane. Second, in line with our core sustainability values, investing in LNG-fueled green vessels demonstrates our continued commitment and leadership in addressing environmental issues r
Zim plunge means underwriters may not exercise options
Zim raised $218 million in the offering, with the underwriters having options to buy shares worth $33 million, over the 30 days from the IPO at a share price of $15.
Zim Integrated Shipping Services Ltd. (NYSE: ZIM) saw its share price fall 23% on its first day of trading last Thursday, recovering 4.8% on Friday to end the week at $12.05 and a company valuation of $1.416 billion, nearly 20% below its IPO valuation of $1.5 billion.
Zim had planned an IPO with a share price of $16-$19 but settled for an IPO below that range at $15.
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Zim CEO Eli Glickman told Globes after the IPO that the offering had gone ahead despite last minute difficulties - a negative trading day on Wall Street, and the fall in share prices of European shipping companies over the past few weeks. Glickman said that Zim had held the first IPO of a shipping company since 2015.