Editor's Review

The United Kingdom's government has subscribed for shares worth US$15 million (approximately Ksh1.94 billion) in the Initial Public Offering (IPO) of Quick Mart PLC.

The United Kingdom's government has subscribed for shares worth US$15 million (approximately Ksh1.94 billion) in the Initial Public Offering (IPO) of Quick Mart PLC.

In a statement on Tuesday, October 20, the supermarket said the investment was made through the United Kingdom's Foreign, Commonwealth & Development Office (FCDO), under its MOBILIST programme.

According to Quick Mart, the subscription represents approximately 13% of QuickMart's Ksh15 billion offer.

QuickMart Group CEO Peter Kang'iri welcomed the investment, saying the partnership would support the retailer's efforts to broaden its ownership as it prepares for the proposed listing.

"We welcome MOBILIST as an investment partner as we broaden QuickMart's ownership. We have built QuickMart around a straightforward proposition: to make fresh food and everyday essentials accessible, run our stores efficiently and reinvest the cash the business generates in disciplined growth.

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"With MOBILIST's support, our proposed listing will help to realise QuickMart's ambition to create long-term shareholder value while expanding opportunities for our suppliers, creating jobs, impacting the economy, and bringing convenient, affordable shopping to more communities," he said.

File image of Quickmart CEO Peter Kang'iri

In a notice on Monday, October 5, Quick Mart launched a Ksh15 billion IPO, paving the way for the supermarket chain’s planned listing on the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange (NSE).

The company said the offer follows regulatory approvals from the Capital Markets Authority (CMA) and the NSE, with the company set to offer 2 billion existing ordinary shares to investors at Ksh7.50 per share.

"Quick Mart PLC is pleased to announce that it has received the requisite regulatory approvals for its Initial Public Offering (IPO) and subsequent listing of its Ordinary Shares on the Main Investment Market Segment (MIMS) of the Nairobi Securities Exchange (NSE)," the notice read.

The IPO will involve the sale of existing shares by Sokoni Retail Kenya Limited, which is the selling shareholder. 

According to the notice, the offer represents 50% of Quick Mart's issued share capital, which stands at 4 billion ordinary shares.

"The IPO is by way of an Offer for Sale of 2,000,000,000 existing Ordinary Shares (the 'Offer Shares'), each having a nominal value of KES 0.20 and an Offer Price of Ksh7.50 by Sokoni Retail Kenya Limited (the 'Selling Shareholder')," the statement added.

Quick Mart said the CMA has approved the offer and the Information Memorandum, while the NSE has approved the listing and admission to trading of Quick Mart's 4 billion issued ordinary shares on the MIMS.

Under the IPO terms, investors will be offered 2 billion ordinary shares at Ksh7.50 each, giving the offer a total value of Ksh15 billion. 

At the offer price, Quick Mart will have an implied market capitalisation of Ksh30 billion.

The minimum application has been set at 500 offer shares, with additional applications required to be made in multiples of 100 shares. 

There is no maximum application limit, while the offer does not include an over-allotment option. The offer period will run from 9:00 a.m. on Monday, October 5 to 5:00 p.m. on Friday, October 30.