(NOTE: This post is for news information only and does not constitute investment advice in any form)

Technology firm Dot Com Zambia Plc opens its initial public offering (IPO) of shares tomorrow 27 November, closing 12 December. It will be the first listing on the Lusaka Securities Exchange since 2020 and the first listing in the LuSE Alternative Market (Alt-M) segment which was launched in 2015 to support high-growth small and medium-enterprises.

Dot Com Zambia (DCZ) is offering up to 1 million ordinary shares for subscription to raise capital for the company. Of these, 900,001 shares are offered to the public and selected institutions, and 99,999 are reserved under the Employee Share Ownership Plan (ESOP). The offering price is ZMK12.30 per share, for a total IPO proceeds of ZMW 12.3m ($538,499). The authorised share capital was increased to 10m, so the offer is for 10% of the equity.

IPO details

The company has created an excellent IPO website where the prospectus and other background documents for the share offer can be found. The applications can be submitted online.

The offer prioritizes retail investors, with 50% reserved for these for a minimum subscription of ZMW 500 shares (ZMW 6,150) and maximum per retail investor of ZMW 500,000 each.

The allocation results are due to be announced on 19 December and the company aims to be admitted and list the shares for trading from 22 December, with ticker DCZ.

Designated adviser for the offer is Kukula Capital, which is also the receiving agent. Tue Nyboe Andersen co-founded Kukula in 2009 and is on the DCZ Board.

Investor relations expert Rob Stangroom of the African Financials website praised DCZ’s IPO website (on LinkedIn): “This small-cap IPO in Zambia shows remarkable transparency in valuation and offer cost disclosure. (I have reviewed) recent IPOs many times the Dot Com offer value and this level of transparency is not provided. Also notable is the relatively low costs of the offer.”

About the company

DCZ was founded by Mawano Kambeu in 2009 as a small firm focused on e-commerce. It has grown into a leading technology business, part of a tech sector that has been fuelled by increasing spread of mobile money and digitizing government services, for which DCZ has become a major driver [see this story on African Markets].

It was incorporated as Book Now Zambia Limited in 2015. The same year Kukula Fund I and eVentures Africa (Dutch investment firm founded by Vincent Kouwenhoven in 2000 which said in 2016 that its first fund is fully invested and now closed) became strategic investors, putting in $0.5m. They brought “both local insight and international expertise to support the company’s growth and expansion”, according to the Dot Com website, and encouraged the company’s strategic development of its technology sector.

The company sold its e-commerce arm in 2018 to a management buyout (it became Click & Connect Limited) and focused on technology platforms, launching its first prepaid automated toll platform the same year after pioneering the system in 2017. It now operates Zambia’s largest platform for electronic toll roads, including the national eToll system which has 31 inland toll plazas.

It launched the eLevy digital tax payment system, which local councils use to collect fees digitally from market vendors and bus operators, bringing transparency and convenience to thousands of small business owners. The projected number of users is over 800,000 users.

It provides eFuel, a business to business (B2B) fleet management platform with over 300 corporate clients, and ePass mobile application for retail users that integrates fuel, tolling and other services. It manages more than 45,000 vehicles through its platforms and offers business-intelligence tools for private clients and for Government. Solutions being developed include bus ticketing platforms, loyalty and rewards programmes, mobile gaming and smart card technology.” According to the prospectus.

It was renamed to Dot Com Zambia in 2025, before the IPO. Kambeu holds 4.1m shares, which will be 41.6% of the company after the IPO.

According to the prospectus: “DCZ has delivered a strong financial growth trajectory, expanding from a relatively small operation into a leading digital infrastructure platform with sustainable profitability and a clear growth outlook. Between 2021 and 2024, revenue increased by 191%, representing a compound annual growth rate (CAGR) of 43%”.

For the year ended 31 December 2024, the Company recorded revenue of ZMW 529m (up from ZMW 214m in 2023), EBITDA (earnings before interest, tax, depreciation and amortization) of ZMW 6.6m (up from ZMW 2.3m) and net profit of ZMW 3.5m (up from ZMW 995,955). The dividend paid jumped from ZMW 908, 836 in 2024 to ZMW 5.4m in 2025 and going forward the company forecasts to pay 50% of net profits as dividend, but at the discretion of the Board of Directors.

The market capitalization at the offer price would be ZMW 123m, representing a price-earnings (PE) ratio of 35x last year’s net profit (earnings). However, this shrinks to 13.1x compared to forecast 2025 earnings of ZMW 9.4m. Page 28 of the prospectus outlines the valuation in more detail.

By the end of September 2025, the company had revenue of ZMW 476m, EBITDA of ZMW 9.6m and profit before tax of ZMW 8.6m. According to the AM strory, it reflects “robust demand for its digital solutions.”

Impact

Felix Chipota Mutati, Minister of Technology and Science, attended an event on 25 November in honour of the future listing (story on TechAfricaNews and Zambian Observer) The Minister said that Dot Com’s listing shows that local SMEs (small and medium enterprises) can succeed by embracing good governance, credibility, and professionalism, which helps build investor trust. encouraged more regulatory support to strengthen Zambia’s digital ecosystem.

Nicholas Kabaso, CEO of the LuSE, described the listing as “bold and exciting” and said it could inspire other SMEs to follow suit, according to a report on Dabafinance.

Proceeds from the IPO will be used to strengthen the company’s existing platforms, accelerate the development of new products such as eFuel and ePass, modernise internal systems, and support research and development initiatives. The listing is also intended to enhance the company’s institutional profile, enabling it to secure new contracts and expand its role in Zambia’s ongoing digital transformation.

DCZ says it is a moment of pride for local innovation and a chance for Zambians to invest in a business built on local talent and solutions. It has invited employees, clients, cooperatives, village banking groups, corporates, institutions and Zambians in the diaspora to join the IPO, according to the Dot Com IPO announcement.

The 17-page biography of Kambeu is an enjoyable read (available here).