Business Editor
Amalgamated Brands Limited launched a US$20 million initial public offering for listing on the Victoria Falls Stock Exchange on Wednesday, the first genuine traditional IPO by a privately held operating company since ZECO Holdings listed on the Zimbabwe Stock Exchange in 2008.
The company 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. 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. Oversubscriptions of up to US$9.8 million have been allocated to the secondary offer, giving a maximum offer size of US$29.8 million. 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 Officer 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 at the Archemine site in Harare, expected to more than double capacity; a Tetra Pak plant for Valley Pride baked beans; a soft-snacks line; and new generation capacity and solar targeting 22 percent of site energy.
The US$15 million secondary proceeds 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 Washington Matsaira, an independent non-executive director, said: “In a market like ours, availability is not a given, it is earned. 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 younger consumers and Sancho, Keshavani and Charlotte 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 remains the controlling shareholder 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 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, 13 October, and published on Wednesday, 14 October, when the offer opened. The offer closes at 12:00 Harare time on Monday, 30 November. Results will be published on the VFEX on Thursday, 3 December, with allocations, settlement and crediting of offer shares on Friday, 4 December. Shares will be issued to the CSD on Monday, 7 December, the same day listing and trading commence on the VFEX.
