Quick Mart Plc saw demand for shares in its initial public offering exceed the number available by almost 23% as Kenya’s second-biggest supermarket chain concluded the…
Quick Mart IPO Oversubscribed In Nairobi
Kenya's second-largest supermarket chain, Quick Mart Plc, has closed an initial public offering that drew applications for roughly 2.45 billion shares against the 2 billion on offer, an oversubscription of nearly 23%. The shares were priced at 7.50 shillings each and attracted 18,492 applications. The Nairobi-based retailer described the board as pleased with the response.
This was Kenya's second IPO of the year, following an offer by state-run Kenya Pipeline Co. The transaction signals a cautious return of activity to Kenyan equity capital markets, which have seen few listings in recent years. A rally in Nairobi-listed stocks, with the benchmark index up 28% in dollar terms this year, has improved the backdrop for issuers and investors alike.
Allocation Favours Cornerstones
About 18,000 Kenyan and East African retail investors received full allocations totalling 119.6 million shares. Forty-four foreign buyers secured roughly 236 million shares, just under half of what they sought. Four cornerstone investors are backing the deal: RWC Asset Management LLP, part of Redwheel Group; 337 Frontier, an adviser focused on frontier African equities; the World Bank's International Finance Corporation; and the UK's Foreign, Commonwealth and Development Office through its Mobilist programme. After the offer, these cornerstones will hold 21.6% of the company, with Kenyan and East African institutions at 17.5%, regional retail buyers at 5% and foreign investors at 5.9%.
Why It Matters For Businesses
The listing is notable because it is structured as an exit rather than a fundraising. Quick Mart will not issue new shares or receive any proceeds. Sole owner Sokoni Retail Kenya Ltd., the vehicle holding the interests of founder John Kinuthia and Mauritius-based Adenia Partners, is selling half its stake. This draws attention to the Nairobi Securities Exchange as an exit route for private equity funds, a path rarely used in Kenya. For ad…
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