Quickmart begins trading after KSh18.41bn IPO
By the AFREEQUE newsroom, based on Citizen Digital
Quickmart began trading on the Nairobi Securities Exchange after an IPO that attracted 18.41 billion Kenyan shillings, against a target of 15 billion. The offering received more than 18,000 applications, according to Citizen Digital.
Quickmart began trading on the Nairobi Securities Exchange after an initial public offering that attracted 18.41 billion Kenyan shillings in applications, against a target of 15 billion, 22.7% more. More than 18,000 investors applied for shares offered at 7.50 shillings each, according to Citizen Digital.
Foreign investors subscribed to nearly three times the number of shares allocated to them. The transaction values Quickmart at around 30 billion shillings and now allows investors to acquire a stake in one of Kenya’s leading supermarket chains, according to Citizen Digital.
The shares were offered by Sokoni Retail Kenya Limited, Quickmart’s parent company, majority-owned by private equity fund Adenia Partners and the supermarket chain’s founding families. The International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, had conditionally committed to invest 1.94 billion shillings, or $15 million, for a 6.5% stake, according to Citizen Digital.
The listing now subjects Quickmart to regular financial disclosure requirements and governance standards overseen by Kenya’s Capital Markets Authority. It also gives existing shareholders the opportunity to sell part of their holdings and establish a market valuation. The transaction follows the oversubscription target announced on 6 November and the announcement on 9 November that foreign investors had acquired control of 52.9% of Quickmart.
