Amalgamated Brands eyes growth

STAFF WRITER

Amalgamated Brands is turning to the capital markets with an Initial Public Offering (IPO) and proposed listing on the Victoria Falls Stock Exchange (VFEX), signalling a business looking beyond consolidation towards scale, investment and long-term growth.

The planned listing marks a strategic shift for the group as it seeks to build on its established operations in manufacturing, logistics and route-to-market services, while unlocking opportunities for scale in Zimbabwe and beyond.

Amalgamated Brands Group chief executive Anele Zunga said the IPO would support a long-term growth strategy anchored in building a stronger, more competitive Zimbabwean business with the capacity to expand regionally.

“We are excited about where we are taking Amalgamated Brands because we are building on businesses and brands that have been part of Zimbabwean households for generations. Our strategy is long term: invest in our manufacturing capability, strengthen the way we reach customers and consumers, and continue building a Zimbabwean company of scale that can compete and grow locally and in the region for many years to come,” Zunga said.
Takura Capital acquired Cairns Holdings Ltd in 2015, after the company had entered final judicial management and then delisted from the Zimbabwe Stock Exchange.
By that time, virtually all of its products had disappeared from the shelves, and it carried debts of over US$25 million.
The acquisition was made under a scheme of arrangement approved by Cairns’ own creditors and shareholders and registered with the High Court.
Takura Capital assumed the company’s debts and funded settlements to workers, preference creditors and trade suppliers, as well paying off all shareholders for their shares.
Takura Capital went on to play a critical role in the revival of Cairns. Some of Zimbabwe’s best-known brands — Spuds, Thingz, Charhons, Sun Jam, Cashel Valley and Willards Cornflakes among others — have long since returned to stores nationwide.
To ensure those products reach consumers consistently, Takura Capital established Cailogistics (Pvt) Ltd and Cailo Marketing Services (Pvt) Ltd (CMS) in 2016 to deliver, sell and merchandise the group’s products, and those of others.
Cailogistics distributes through a national fleet of more than 500 owned and hired vehicles, giving the group control over getting products onto shelves reliably while also carrying freight for third parties.
CMS covers the final step to market, handling merchandising, sales support and promotions.
Together with the factories, this makes a simple three-part model: Cairns makes, Cailogistics moves and CMS helps sell.
The group’s strength increasingly extends beyond what happens inside the factory.
The group reported pro-forma revenue of US$78.7 million for 2025, up about 33% compared to FY2024, with EBITDA of US$10.47 million.
More than 95% of revenue is billed in United States dollars, and the group employs more than 2,100 people.
Owen Namusi, Head of Corporate Advisory at MMC Capital Advisory, Financial Adviser and Lead Sponsor to the Amalgamated Brands IPO, said that the listing aims to raise funding for growth capital expenditure at Cairns, broaden ownership and provide a partial exit for Takura Capital.
The size of the primary offer, he explained, was determined by the company’s capital expenditure plan, rather than by the sell-down. After listing costs of about US$0.52 million, US$4.48 million will fund a defined capex programme at Cairns, including a new biscuit line expected to more than double biscuit capacity and a soft snacks line.
The remaining balance of about US$42.1 million of the US$46.6 million FY2026 to FY2030 capex programme will be funded from the company’s own operating cash flow and modest additional borrowings, as set out in the projected cash flow statement in the Prospectus.
Raising the entire five-year capex budget now, against a roll-out over five years, would have diluted shareholders unnecessarily, with funds lying idle for years.On the secondary component, Namusi explained that the US$15 million offer of existing shares by Takura Capital was sized so that the listing meets the VFEX’s 30% minimum public free float. On the base Offer, the free float will be approximately 30.74%.
A lower secondary sell amount was not possible, as the offer would not have met the minimum public float threshold of 30%. Any oversubscription, of up to a further US$9.8 million, will be met from Takura’s existing shares, but Takura will retain at least 55% of the enlarged share capital and remain the controlling shareholder.
The Directors’ projections in the Prospectus show group revenue of US$94.4 million in FY2026 and US$120.0 million by FY2030. These are projections rather than guaranteed outcomes.
The Board intends to adopt a dividend policy targeting 30% to 40% of profit after tax, building towards that range over time. Group Finance Director Rumbidzai Manjengwa said: “In the first half of 2026, we paid US$3.25 million of dividends. US$1.9 million was the ordinary dividend out of FY2025 earnings. This was 40% of FY2025 profit after tax on the listed perimeter, at the top of the 30 to 40% range of the Board’s intended policy. The balance of US$1.35 million returned funds that our shareholder had injected specifically to expand the Cailogistics fleet serving Lobel’s Holdings (Pvt) Ltd. Once the decision was taken to sell that business, the trucks were not bought, and the money went back through a dividend. The entire dividend was funded from the US$4.5 million of cash the Group held at 31 December 2025.”
Planned investment includes additional biscuit capacity, a Tetra Pak line for baked beans, new soft-snack capacity and energy projects, some of which have already been funded.
Explaining the movement in the group’s cash flows, Manjengwa said:“By 30 June 2026, the company had increased borrowings by US$4.3 million, of which US$2.2 million went to capital expenditure. The balance, together with H1 2026 EBITDA of US$6.5 million, was applied to improving raw material supplies, funding debtor growth from higher sales and increasing finished product inventory. Our procurement pattern, especially in fruit and vegetables, is seasonal. Produce, such as Michigan pea beans, guavas, apples and peaches, is bought during the harvest and used in production throughout the rest of the year until the next harvest, converting back to cash as product is sold. To meet expected volume increases, we raised raw material holdings by US$2 million, which also supports margin expansion through purchasing agricultural produce when it is in season and prices are cheapest.The audited financial statements for 2024 and 2025, the unaudited half-year statements to 30 June 2026 and the September 2026 management accounts are among the documents listed in the Prospectus as available for inspection at the company’s registered office and at the offices of the Financial Adviser, MMC Capital Advisory.
The listing, therefore, represents more than a broadening of the ownership structure. It brings new capital, greater market visibility and stronger public-market discipline to a business with established brands, operating infrastructure and clear growth ambitions. For Amalgamated Brands, the next chapter will ultimately be judged on execution: growing volumes, improving efficiency, expanding distribution and converting established household recognition into sustainable earnings.
The Offer at a glanceThe Offer comprises 57,142,857 ordinary shares at a fixed price of US$0.35 per share, raising US$20.0 million: US$5.0 million of new shares issued by the Company and US$15.0 million of existing shares offered by Takura, with up to a further US$9.8 million available if the Offer is oversubscribed.
The Offer opened on 14 October 2026 and closes at 12:00 on Monday 30 November 2026, and listing on the VFEX is expected on Monday 7 December 2026.