Wednesday , 1 June 2016
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ZIM delays IPO and its CEO resigns

Zim Integrated Shipping Services Ltd. has announced that Rafi Danieli is resigning from his role as CEO. The announcement comes three days after an Israeli newspaper claimed that the carrier delayed an initial public offering (IPO) on Wall Street reportedly planned for the first half of 2016.

Haaretz claimed that the company delayed a planned IPO amid slowing market conditions and discouraged by the “unsuccessful” offering in November 2015 of German carrier Hapag-Lloyd, which delayed its IPO twice before reducing the offer price and number of shares.

ZIM, which reportedly neither formally announced nor denied its IPO plans, said that Danieli will continue to serve in his role until a new CEO is appointed.

In October 2015, the company reportedly appointed Bank of America Merrill Lynch and Barclays Plc to lead its IPO on Wall Street in 2016.

ZIM told press agency Reuters in October that it “has been contemplating going public and other financing options since 2007” and that its “strategy has not changed”.

Danieli, who worked at the company for 38 years and held the role of CEO for the past seven, is expected to serve as an active advisor to ZIM following the appointment of the new CEO, the search for whom will be lead by a committee nominated by the shipping company’s board of directors.

Commenting on Danieli’s resignation, the carrier said in a statement: “During his service, the company has moved from making operational losses to an operational profit, with operating margins higher than the industry average.”