Zim IPO talk resurfaces

Israeli carrier Zim could try once again for an IPO. The containerline, now with a new CEO, Eli Glickman, at the helm could look at a listing as an exit strategy for its main shareholders, after efforts to sell the company had failed, Alphaliner posited in its latest weekly report.

Zim, the world’s 13th largest carrier, has failed on three previous attempts to list in the past nine years.

“While Zim’s main shareholders are reported to be open to a sale, the IPO option remains their most realistic exit route as previous attempts to sell the company have all failed to materialize,” Alphaliner noted, pointing out that the carrier is in urgent need of fresh cash injections.

Zim’s current shareholders are Kenon Holdings (32%) and various banks and shipowners who received 68% of the shares in the company in 2014 as part of a debt-to-equity swap arrangement. The Israeli government also holds a special so-called golden share in the carrier, which, among other terms, requires Zim to obtain the state’s consent to transfer more than 35% of its shares and also ensures the maintenance of minimal operational ability and freight capacity in times of crisis.