World News
Reports: Zim Hires Merrill Lynch, Barclays to Lead 2016 US IPO
Sources said to be familiar with the matter have said Israel-based Zim Integrated Shipping Services Ltd. (Zim) has hired Merrill Lynch and Barclays Plc (Barclays) to lead a U.S. initial public offering (IPO) for the company, Bloomberg reports.
Zim, however, has played down the rumours.
"Zim has been contemplating going public and other financing options since 2007," said Maor Aharoni, a spokesperson for Zim.
"This strategy has not changed. We have nothing to report at this time and don't comment on rumors."
The sources, who are said to have asked to remain anaymous because Zim's IPO plans are not yet public, reported that the company is planning to list shares by the first half of 2016.
Barclays in Israel and Merrill Lynch in Israel are both said to have declined comment.
Zim is said to have had previous plans to raise more than $500 million in a Hong Kong IPO before it fell behind on bond payments.
After an extended period of difficulty, the company came to an agreement with its debtors in January 2014, which ultimately resulted in the Israeli state losing control of the container carrier as part of a $3 billion financial restructuring plan.
In May, Zim reported that bunker prices and operational efficiencies helped the company to a "sharp improvement" for 2015 Q1.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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