By Quick Mart PLC opened its initial public offering on Monday, offering 2 billion existing ordinary shares at Sh7.50 each as the Kenyan supermarket chain prepares to list on the Nairobi Securities Exchange.
The Quickmart IPO runs from Oct. 5 to Oct. 30 and values the retailer at Sh30 billion at the offer price, according to the company’s public announcement.
The shares being offered represent 50% of Quick Mart’s issued share capital of 4 billion shares. The offer is being made by Sokoni Retail Kenya Limited, the company’s selling shareholder, rather than through the issuance of new shares.
As a result, Quick Mart itself will not receive proceeds from the Sh15 billion offer if it is fully subscribed. The transaction is instead an offer for sale by the existing shareholder.
The Capital Markets Authority has approved the offer and Information Memorandum, while the NSE has approved the listing and admission to trading of Quick Mart’s entire issued share capital on its Main Investment Market Segment, the company said in the announcement.
The approvals do not constitute a recommendation or endorsement of Quick Mart or the shares being offered, according to the notice.
The minimum application under the Quickmart IPO is 500 shares, requiring an investment of Sh3,750 at the offer price. Additional applications must be made in multiples of 100 shares, while the announcement sets no maximum application limit.
The offer will proceed only if valid applications are received for at least 75% of the shares on offer, equivalent to 1.5 billion shares.
If that minimum subscription is not achieved by the closing date, the offer will not proceed and application money will be refunded without interest, according to the company’s terms.
Investors must have a valid Central Depository and Settlement account before shares can be credited.
Applications can be submitted electronically through the company’s designated online platform, while investors seeking to apply for shares worth up to Sh250,000 can use the USSD service by dialling 483803#, the announcement said.
Physical applications are also available through the designated placing agents.
Quickmart expects to announce the results of the offer and notify investors of their allocations on Nov. 6.
Qualified institutional investors are scheduled to make payments on Nov. 10, followed by the allotment of shares, crediting of CDS accounts and processing of refunds, where applicable, on Nov. 11.
Trading in Quick Mart shares on the NSE is scheduled to begin on Nov. 12, according to the timetable contained in the public announcement.
The company said the dates could be changed subject to regulatory approval, with any amendments to be communicated through the press and its website.
The selling shareholder will also be subject to a 24-month lock-up period beginning on the listing date. The restriction applies to 60% of its shareholding after the offer.
The International Finance Corporation has conditionally committed to purchase up to $15 million worth of the offer shares, equivalent to about Sh1.94 billion and approximately 13% of the offer, according to the announcement.
The commitment remains subject to approval by the IFC’s board.
IFC said its participation is solely as a commercial investment and does not represent government, sovereign or institutional backing, a guarantee or credit support.
It also said it had not verified the accuracy or completeness of information contained in the company’s announcement or Information Memorandum and that prospective investors should not rely on its potential investment when making their own investment decisions.
Quickmart had earlier announced plans to list 2 billion existing shares, representing half of its issued capital, as part of a transaction intended to broaden ownership of the retailer. At the time, the company said it would continue funding its expansion primarily through internally generated cash flows.
The retailer currently operates 72 stores across 16 counties, according to information released when it announced its listing plans. It reported FY2025 revenue of Sh50.4 billion and adjusted profit after tax of Sh1.7 billion.
The Quickmart IPO comes as Kenya’s capital markets see renewed interest in public share offerings. The planned supermarket listing would give retail and institutional investors an opportunity to take ownership in one of the country’s established modern grocery retailers.
The offer price of Sh7.50 gives Quick Mart an implied equity value of Sh30 billion based on the company’s 4 billion issued shares.
Unlike a primary share issue, however, the transaction will not inject the Sh15 billion raised directly into Quick Mart’s balance sheet. The proceeds will go to the selling shareholder.
The distinction is important for investors assessing the transaction because the offer provides an opportunity to acquire existing shares but does not constitute a capital-raising exercise for the operating company.
The company has advised prospective investors to read the Information Memorandum and consider the terms and risks before making an investment decision.
The Quickmart IPO is scheduled to close at 5 p.m. East Africa Time on Oct. 30, with trading expected to begin on the NSE on Nov. 12.
