Business Reporter
LOCAL automotive manufacturer and distributor Mwana Group has launched an Initial Public Offering to raise US$1 million in growth capital through listing on the Zimbabwe Entrepreneurship Exchange (ZEEX).
The company is offering 20 million new ordinary shares at an offer price of US$0,05 per share.
The offer opened on November 2, 2026, and is scheduled to close on November 27, 2026, with official trading on ZEEX expected to commence on December 7, 2026, according to the company’s investor prospectus.
The minimum subscription for the IPO shares has been set at US$100 for individuals and US$1 000 for corporate investors.
Established as an enterprise-focused board operated by the Zimbabwe Stock Exchange, ZEEX serves as a dedicated digital capital-market platform designed to bridge funding gaps for high-growth small and medium-sized enterprises.
The exchange provides streamlined compliance requirements, a digital Deal Room and secondary trading mechanisms to help indigenous businesses access public equity and offer liquidity to early investors.
Upon successful completion of the Mwana offer, the public will hold a 10,88 percent stake in the expanded issued share capital of 183 844 761 shares.
The transaction values the business post-listing at about US$9,19 million, aligning with an independent present value assessment of US$8,66 million conducted under the Discounted Future Earnings methodology.
Mwana Group intends to deploy the US$1 million net proceeds primarily towards expansion, inventory and local assembly operations.
Specifically, US$300 000 will be allocated to expand spare parts inventory to address estimated lost sales.
The company will use US$100 000 for land acquisition and US$150 000 for buildings and civil works to support expanding trading outlets from five to at least 15 countrywide.
An additional US$100 000 is earmarked for production equipment and US$100 000 for raw materials to scale filter manufacturing capacity from 20 units per day to 1 000 units per day.
The firm has earmarked US$100 000 to procure Completely Knocked Down kits to assemble Mwana Tractors locally under a technology partnership with a Chinese state-owned enterprise.
The remaining proceeds will cover US$100 000 in working capital and US$50 000 for utilities and statutory permits.
Founded in 2019 by managing director Mr Kudakwashe Mutenda — a former Daimler AG executive — Mwana Group manufactures branded filtration products and distributes commercial truck spare parts, lubricants, and workshop engineering services.
The business targets commercial heavy vehicle fleets across the transport, logistics, farming, and mining sectors.
The group has outlined plans to begin assembling farming tractors locally in late 2026 with a 10 percent initial localisation rate, targeting 60 percent local content by 2030.
According to audited disclosures included in the listing document, Mwana Group reported revenue growth over the past three financial years.
In 2023, the company generated revenue of US$222 329 and a net profit after tax of US$48 142.
Revenue increased to US$348 765 in 2024, yielding a net profit after tax of US$88 328.
In 2025, revenue reached US$371 862, though the company recorded an operating loss of US$170 546 following a non-recurring abnormal inventory write-down of US$231 596 to clear historical deadstock acquired during initial start-up phases.
For the first half of 2026, unaudited financial statements show revenue of US$95 333 and a net operating profit of US$15 298 for the six months ended June 30, 2026.
Looking ahead, management’s financial projections outline a steep scaling trajectory across all business units, with total revenue forecasted to reach US$11,89 million in FY2027 before climbing to US$13,1 million in 2028, US$14,39 million in 2029, and US$15,83 million by 2030.
This anticipated expansion is expected to be driven primarily by rapid scaling in filter production up to 1 000 units daily, wider geographic reach through 15 national outlets, and the commercial introduction of the Mwana Tractors assembly line.
Following the offer, the founding Mutenda Family Trust will remain the majority controlling shareholder with a 68,45 percent stake.
Existing international shareholders will hold a combined 20,04 percent stake. Founding shareholders have entered into a five-year lock-in agreement restricting share transfers post-listing to demonstrate long-term commitment.
Subscription proceeds will be held in a joint escrow account at CABS, operated alongside transfer secretaries Corpserve Registrars until listing conditions are satisfied.
