Quickmart launches Sh15 billion IPO ahead of NSE listing

Supermarket chain Quickmart has launched a Sh15 billion initial public offering (IPO) ahead of its planned listing on the Nairobi Securities Exchange (NSE). The offer, which opened on October 5, is scheduled to run until October 30, with a market debut expected on November 12.

The IPO involves the sale of two billion existing ordinary shares, representing 50 percent of the company’s issued share capital. These shares are being sold by the company’s selling shareholder, Sokoni Retail Kenya Limited. Because this is an offer for sale of existing shares rather than a new capital raise, the proceeds will go to the selling shareholder rather than to Quickmart itself.

At the offer price of Sh7.50 per share, Quickmart has an implied valuation of Sh30 billion. The transaction is conditional on achieving a minimum subscription of 75 percent, meaning at least 1.5 billion shares must be accepted for the IPO to proceed. The Capital Markets Authority and the NSE have both approved the offer and the admission of the company’s shares to the Main Investment Market Segment (MIMS).

Investors must hold a valid Central Depository and Settlement (CDS) account. The minimum application is 500 shares, with subsequent applications made in blocks of 100. Following the listing, Quickmart intends to implement a dividend plan, aiming to pay out approximately 80 percent of annual profit after tax twice a year, subject to board approval and capital requirements.