Business Reporter
Zimbabwe’s capital markets recorded a landmark event yesterday as Amalgamated Brands Limited announced a US$20 million initial public offering for listing on the Victoria Falls Stock Exchange (VFEX).
This will be the country’s second genuine traditional IPO by a privately held operating company since ZECO Holdings listed on the Zimbabwe Stock Exchange in 2008.
West Properties Holdings, which listed in 2023, is the only other company to list by IPO since ZECO.
Amalgamated Brands is one of Zimbabwe’s largest fast-moving consumer goods groups, comprising Cairns Foods, the manufacturing subsidiary; Cairns Logistics, the logistics and distribution arm and Cairns Marketing Services, which handles sales and merchandising.
Its portfolio includes household names such as Spuds, Willards and Sun Jam. More than 95 percent of revenue is earned in US dollars.
The offer comprises US$5 million in new ordinary shares and US$15 million in existing shares, a
base offer of 57 142.857 shares at US$0,35 per share.
The primary allocation is structured so that application monies fund the full US$5 million primary offer before any allocation to the secondary offer.
Group chief executive Mr Anele Zunga said the US$5 million primary proceeds would fund capacity expansion projects across all of the group’s main categories.
These include a new biscuit line in Harare, expected to more than double capacity; a Tetra Pak plant for Valley Pride baked beans; a soft-snacks line and new solar power generation capacity targeting 22 percent of the required site energy.
The US$15 million secondary proceeds will go to selling shareholder Takura Capital and will not accrue to the company.
Following the listing, Takura’s shareholding will fall from 98 percent to approximately 69 percent, in line with VFEX rules, with new minority shareholders expected to hold about 29 percent and
Cairns employees 1,6 percent.
Board chairman Mr Washington Matsaira, an independent non-executive director, set out the group’s investment case.
“In a market like ours, availability is not a given; it is earned,” he said.
“Brands are won at the factory, where we control quality and cost, but also crucially, they are won again in the market, where the product either reaches the shelf or it does not. We have chosen to own both ends. That choice is the heart of the investment case.”
Mr Matsaira said the group manufactures everyday food and consumer brands that most
Zimbabwean households already have in the cupboard, citing Spuds and Willards for young consumers and Sun Jam, Cashel Valley and Charhons biscuits for older generations.
He added that the board structure ensures the company’s growth programme is paid for before any realisation by the selling shareholder, who retains the controlling interest after the offer.
The group reported turnover growth of 33 percent in 2025 to US$78,7 million. Pre-money equity value is US$63,7 million, rising to US$68,7 million post-offer.
Enterprise value is approximately US$66 million, or 6,3 times FY2025 pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of US$147 million.
Historic net debt stands at US$1,84 million, roughly 0,2 times EBITDA.
Mr Zunga said the investment case rests on five pillars: heritage brands deeply rooted in the
market, strong everyday demand, an owned route-to-market through two operating businesses,
sustained profitable growth and management depth.
The group employs over 2 100 people and holds twelve registered title deeds over its principal sites.
The prospectus was registered by the Registrar of Companies on Tuesday, October 13 and published on Wednesday, October 14, when the offer opened.
The offer closes at 12:00 Harare time on Monday, November 30, 2026. Results will be published on the VFEX on Thursday, December 3, 2026, with allocations, settlement and crediting of offer shares on Friday, December 4, 2026.
Shares will be issued to the Central Securities Depository on Monday, December 7, 2026, the same day listing and trading commence on the VFEX.
Since ZECO Holdings’ genuine traditional IPO listing on the ZSE in 2008, the ZSE has seen few new listings.
Several major companies — including Innscor, Simbisa and WestProp — have migrated to the US dollar-denominated VFEX, deepening concerns over ZSE liquidity and concentrating trading in Delta and CBZ.
Amalgamated Brands’ decision to list directly on VFEX reflects Zimbabwean corporates’ clear preference for a US dollar-denominated capital market that matches their dollarised balance sheets.
The company noted that VFEX trading costs are approximately 2,1 percent, against 4,6 percent on the ZSE.
For Zimbabwe’s capital markets, the significance of the transaction extends beyond the capital raised. Nearly two decades after the last true IPO, Amalgamated Brands’ listing may signal the reawakening of a primary market function long dormant on the country’s exchanges.
