NAIROBI, Kenya- Quickmart PLC’s KSh15 billion initial public offer has been oversubscribed after attracting applications worth KSh18.41 billion, ahead of the supermarket chain’s planned trading debut on the Nairobi Securities Exchange on November 12.
The company said it received 18,492 applications for 2.45 billion shares against the two billion shares available at KSh7.50 each. That represented an overall subscription level of 122.7 per cent and excess demand for 454.6 million shares.
The transaction involves the sale of existing shares by Quickmart’s sole shareholder, Sokoni Retail Kenya Limited, rather than the issue of new shares by the retailer itself.
All four billion issued shares in Quickmart are set to list on the NSE’s Main Investment Market Segment, with the public offer representing 50 per cent of the company’s share capital.
Foreign investors drive demand
Foreign investors submitted applications worth KSh3.58 billion — nearly three times the shares originally reserved for their category — making them the most oversubscribed investor pool.
Kenyan and East African retail investors also showed strong appetite, applying for KSh2.39 billion worth of shares, while Kenyan and East African institutional investors submitted bids valued at KSh5.25 billion.
| Investor category | Applications | Value of shares applied for | Subscription level |
|---|---|---|---|
| Kenyan and EAC retail investors | 18,178 | KSh2.39 billion | 132.7% |
| Kenyan and EAC institutional investors | 263 | KSh5.25 billion | 109.4% |
| Foreign investors | 44 | KSh3.58 billion | 298.0% |
| Cornerstone investors | 7 | KSh7.19 billion | 99.9% |
The four cornerstone investors accounted for applications worth KSh7.19 billion. The company said the overall response reflected demand from domestic, regional and international investors.
Retail and institutional applicants receive full allocation
Quickmart said Kenyan and East African retail investors, including eligible direct staff, as well as Kenyan and East African institutional investors, received full allocation of their eligible applications.
Foreign applicants were scaled back under the allocation policy because demand exceeded the shares reserved for that pool. Founder shareholders who applied for shares did not receive an allocation because of the oversubscription.
Qualified institutional investors have until November 10 to make payment. Successful applicants are expected to have their Central Depository System accounts credited from November 11, when refunds for unallocated shares will also begin. Public trading is scheduled to start on November 12.
“The Board is delighted with the strong response to the Offer,” Quickmart said, adding that more than 18,000 applicants participated across the investor categories.
An offer for sale, not new capital for Quickmart
The KSh15 billion offer is an offer for sale by Sokoni Retail Kenya, meaning Quickmart will not receive the proceeds directly.
The company estimates that net proceeds of about KSh14.4 billion will go to Sokoni Retail Kenya, whose shareholders include investment firm Adenia Partners, the Kinuthia family who founded Quickmart, the founders of Tumaini and Quickmart Group Chief Executive Officer Peter Kang’iri.
Sokoni Retail Kenya will retain a 50 per cent stake in Quickmart after the listing. It has also agreed not to sell 60 per cent of its remaining shares for 24 months after admission to the NSE.
From one Nakuru store to a national retailer
Quickmart was founded in Nakuru in 2006 by the late John Kinuthia as a family-owned supermarket.
Adenia Partners invested in the business in 2019, after which Quickmart and Tumaini Self Service were combined under the Quickmart brand. The merger created a bigger national retail platform and added more formal governance and institutional management to the business.
Before the merger, the Competition Authority of Kenya said Sokoni had acquired Tumaini, which operated 13 outlets, while Quickmart had 10 stores in Nairobi, Kiambu and Nakuru. The regulator approved Sokoni’s acquisition of control of Quickmart without conditions.
Quickmart now operates more than 72 stores in 16 counties. The company says it handles more than five million customer transactions every month, works with over 700 suppliers, employs more than 8,000 people and has 2.5 million Q-Points loyalty members.
The NSE listing will give the public a chance to trade in one of Kenya’s largest homegrown supermarket chains as it seeks to expand its footprint, strengthen its retail systems and compete in an increasingly crowded formal grocery market.
