Leading local energy company ZEN Petroleum Holdings PLC has listed and started trading on the Ghana Stock Exchange (GSE) after raising GHS 640 million ($57.2m) in an oversubscribed initial public offering (IPO) of shares. The successful IPO and listing shows the promise of the exchange for other local companies aiming to expand and raise long-term risk capital.

The IPO was for 20% of the equity made up of 128m shares at GHS 5.00 each. Strong demand meant that GHS 970m was bid according to news reports including on African Markets (51% oversubscribed), so applications had to be scaled back. Founder and Managing Director William Tewiah has 512m shares or 80% of the total 640m shares.

The prospectus can be found on the excellent African Financials website (but not on investor relations pages of the ZEN website).

The shares were listed for trading on the GSE on 22 April under ticker ZEN and the price had climbed from the initial GHS5.00 to GHS 5.75 over the first week (GSE closing prices for 29 April).

The sponsoring broker was SBG Securities Ghana, the lead arranger was Temple Investments and the IPO registrar is Central Securities Depository (GH) LTD. Due to local content requirements applicable to the operating subsidiaries within the ZEN Group, both the IPO and trading in the shares are restricted to only Ghanaian investors, according to the prospectus “the CSD will provide post-trade monitoring and any transaction identified as involving a foreign investor will be flagged and cannot be successfully executed.”

Zen Holdings was set up to own the five subsidiaries that form the group: ZEN Petroleum LTD, ZEN Terminals LTD, Astra Oil Services LTD, ZEN Transport LTD and Ladybird Logistics LTD.

Capital raised will be deployed on strategic priorities:

• 96.3% to strengthen working capital of its operating subsidiaries, which include retail stations and fuel supply to the mining sector and expanding downstream distribution infrastructure.
• 3.7% to cover the IPO expenses of GHS 23.5m ($2m) (see page 18 of the prospectus).

The share offer was not underwritten, but it had firm commitments from leading institutional investors to snap up the shares, according to the prospectus (p22)

From the ZEN Prospectus

ZEN Petroleum was founded in 2010 and has grown into a leading supplier of fuel and lubricants. It operates over 63 retail stations and employs over 1,400 people. It is one of Ghana’s top four with an estimated 6% market share, according to the prospectus (p30).

From the ZEN Prospectus

According to summary of the prospectus on African Financials website: “operations span the entire value chain, including the importation, storage, distribution, marketing, and retail of petroleum products, alongside comprehensive logistics and haulage services.”

The website also highlights key financials from the last three years including revenue up to GHS 6.3 billion in the year to 31 March 2025 from GHS 4.9bn in 2024, and profit for the year at GHS 437m up from GHS 259m. An IPO valuation report valued the company at GHS 3.2bn.

Speaking on 27 April, management accountant Tewiah said the successful listing reflected years of perseverance, strategic decision-making and continuous improvement aimed at creating long-term value for stakeholders, according to this report in Ghanaian Times. According to the prospectus, his background includes ”key analytical and financial roles with global institutions, including Lloyds TSB Bank, Merrill Lynch, ABN AMRO, UBS, Credit Suisse, Schroders Asset Management, and the Bank of England.”

He said ZEN Petroleum would boost its downstream operations, invest in critical infrastructure and create more employment opportunities for Ghanaians, especially within the energy value chain.

According to the prospectus (p30) “ZEN Petroleum is a top-tier supplier of fuel and lubricants to the mining and retail sectors. It ranks among the top 4 oil marketing companies in Ghana with an estimated 6% market share and is recognised as a market leader in the mining sector, supplying approximately 49% of fuel consumed by major mining companies. ZENZEN Petroleum’s market position is supported by a secure supply chain developed with British Petroleum Oil International (BP), Trafigura and Repsol SA and substantial investments in fuel storage infrastructure at key mining sites, including depots at Goldfields (Tarkwa), Perseus (Ayanfuri), Asanko (Manso Nkran), Cardinal (Bolgatanga) and Newmont (Kenyasi). ZEN Petroleum was ranked among the Financial Times’ Africa’s Fastest-Growing Companies in 2022, 2023 and 2024, reflecting its sustained growth performance over the period. Alongside its mining operations, ZEN Petroleum has established a rapidly expanding retail network with over 63 active stations across Ghana. It is also a leading provider of bunkering services supplying substantial volumes of Marine Gasoil (MGO) to vessels at key ports such as Tema, Takoradi, and Sekondi.”

Photo1 : Ladybird Logistics, formed in 2017, is unique by assembling a complete team of female drivers offering increased opportunities for women in an industry traditionally dominated by men. Photo 2: Founder and Managing Director William Tewiah (photos from ZEN Petroleum website)