The shipping company Zim has recorded a significant improvement in its revenues, according to the prospectus published by the company ahead of an IPO in New York, in which it will try to raise hundreds of millions of dollars.
The prospectus published by Zim, headed by Eli Glickman, shows that the company’s revenues stand at about $ 1 billion, an improvement of about 20%, and that the net profit in the third quarter was about $ 142 million. This is compared to the corresponding quarter last year, when its profits amounted to only about $ 4 million. The offering will reflect the company’s value of $ 1.5 billion (before the new round) and is expected to be completed by the end of January 2021, all led by the investment banks: City Bank, Barclays, Jeffries and Goldman Sachs.
Merchandise containers (Photo: Reuters)In preparation for the IPO, ZIM also showed an improvement in the gross and operating profit line and also reported a significant improvement in other parameters, including EBITDA and cash flow (operating). Despite the corona plague, in the sum of the period between January and September 2020, the company shows a 6% improvement in its revenues, to a total of about $ 2.6 billion, along with a net profit of about $ 153 million.
This is compared to a loss of about $ 18 million that ZIM presented in the first nine months of 2019, which the company concluded with a similar loss.
ZIM’s operating profit for the first three quarters of the year was about $ 283 million, most of them in the third quarter. Profit for the first nine months of the year was about $ 158 million.
The significant improvement in Zim’s financial data is mainly reflected in the company’s cash flow, which has been about $ 466 million and about $ 245 million in the third quarter since the beginning of the year. ZIM is held by Canon, which is controlled by Idan Ofer (approximately 30% of the shares), as well as by the banks.
Hint in previous reports
ZIM updated earlier this year on a possible intention to go public, and recently reiterated this intention in an announcement that accompanied a move to advance a debt payment of about $ 55 million.
Eli Glickman (Photo: Sivan Farage)ZIM has made two major debt settlements in the past: the first in 2009, when it redeployed a debt of about $ 7 billion. About five years later, in 2014, the company made a “haircut” for debts amounting to about $ 3.4 billion.
Eli Glickman’s tenure as CEO of the company (since 2017) heralded a significant improvement in business results, which, as mentioned, peaked in the third quarter of 2021.