Amalgamated Brands launches US$20M IPO on Victoria Falls Stock Exchange

ZIMBABWE – Amalgamated Brands Limited has launched a US$20 million initial public offering (IPO) on the Victoria Falls Stock Exchange (VFEX), marking a significant development for Zimbabwe’s capital markets and the country’s fast-moving consumer goods (FMCG) industry.

The offering represents Zimbabwe’s second 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 have completed an IPO during the period.

Amalgamated Brands operates through three subsidiaries: Cailo Foods, its manufacturing arm; Cailologistics, which manages logistics and distribution; and Cailo Marketing Services, responsible for sales and merchandising.

Its portfolio includes established consumer brands such as Spuds, Willards and Sun Jam, with more than 95% of group revenue earned in US dollars.

The IPO comprises US$5 million in new ordinary shares and US$15 million in existing shares, at an offer price of US$0.35 per share.

Application funds will first be allocated to the primary offer before any allocation is made to the secondary offer.

Group chief executive Anele Zunga said proceeds from the primary offer would finance capacity expansion across the group’s main product categories.

Planned investments include a new biscuit production line in Harare, expected to more than double existing capacity; a Tetra Pak plant for Valley Pride baked beans; a soft-snacks production line; and additional solar power generation capacity targeting 22% of the group’s required site energy.

The investments are expected to strengthen production capacity, improve energy resilience and support the group’s ability to meet demand for locally manufactured consumer goods.

The US$15 million secondary component will be paid to selling shareholder Takura Capital rather than the company.

Following the listing, Takura’s stake is expected to decline from 98% to approximately 69%, while new minority investors will hold about 29% and Cairns employees approximately 1.6%.

Board chairman Washington Matsaira said the group’s integrated manufacturing, distribution and marketing model was central to its investment proposition.

“In a market like ours, availability is not a given; it is earned,” he said, highlighting the importance of controlling production quality, costs and product availability at retail outlets.

The listing comes as manufacturers across African markets seek capital to expand local production, strengthen distribution networks and reduce exposure to supply-chain disruptions.

For Zimbabwe’s food processing industry, Amalgamated Brands’ planned investments highlight the role of capital markets in financing production upgrades and supporting domestic consumer-goods supply.

By combining established brands with additional manufacturing capacity, the group aims to reinforce its position in Zimbabwe’s competitive FMCG market while offering investors exposure to a business generating most of its revenue in US dollars.

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