Industrial Alliance Investment Management Inc., a Canadian financial services company, has increased its stake in ZIM Integrated Shipping Services Ltd., an Israeli container shipping company, by 69.7% in the first quarter of 2023, according to a recent filing with the SEC. The firm now owns 94,710 shares of ZIM’s stock, worth about $2.23 million, as of the end of March.
ZIM’s Performance in the Shipping Industry
ZIM Integrated Shipping Services Ltd. is one of the largest container shipping companies in the world, operating in over 100 countries and serving more than 500 ports. The company was founded in 1945 and is headquartered in Haifa, Israel. ZIM offers a variety of services, including dry cargo, reefer cargo, project cargo, out-of-gauge cargo, and breakbulk cargo.
ZIM has been performing well in the shipping industry, despite the challenges posed by the COVID-19 pandemic and the global supply chain disruptions. The company reported a record revenue of $4.8 billion in 2022, up by 77% from 2021. Its net income also soared to $1.3 billion, compared to a loss of $13 million in 2021. ZIM attributed its success to its customer-centric approach, operational efficiency, digital transformation, and flexible business model.
Industrial Alliance Investment Management’s Interest in ZIM
Industrial Alliance Investment Management Inc. is a subsidiary of iA Financial Group, one of the largest insurance and wealth management companies in Canada. The firm offers a range of investment products and services, including mutual funds, segregated funds, portfolio management, and asset allocation.
The firm has been showing interest in ZIM since the latter’s initial public offering (IPO) in January 2021. ZIM raised $218 million in its IPO, selling 14.5 million shares at $15 per share. The company’s shares have since fluctuated between $11.78 and $53.59, reflecting the volatility of the shipping market.
Industrial Alliance Investment Management Inc. acquired 55,816 shares of ZIM’s stock in the fourth quarter of 2021, worth about $1.31 million at that time. The firm then increased its position by 69.7% in the first quarter of 2023, adding 38,894 shares to its portfolio. The firm now owns 0.08% of ZIM’s outstanding shares.
What Does This Mean for ZIM and Its Investors?
The increased stake by Industrial Alliance Investment Management Inc. indicates that the firm sees potential in ZIM’s growth and profitability. The firm may also be attracted by ZIM’s dividend policy, which aims to distribute at least 30% of its annual net income to its shareholders. ZIM declared its first dividend of $0.12 per share in May 2021, and increased it to $0.25 per share in August 2021.
ZIM’s investors may benefit from the firm’s confidence and support, as well as from the company’s strong financial performance and outlook. ZIM expects to generate a revenue of $6.5 billion to $7 billion in 2023, and an adjusted EBITDA of $2 billion to $2.2 billion. The company also plans to invest in new vessels, digital solutions, and environmental initiatives to enhance its competitive edge and sustainability.