Zim plunge means underwriters may not exercise options Leave a comment


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.







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.

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. Unless the price returns to $15, the underwriters will be unlikely to exercise their options.

Published by Globes, Israel business news – en.globes.co.il – on January 31, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021



Eli Glickman

Eli Glickman

 

 



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