Quick Mart Plc's initial public offering concluded with overwhelming investor demand, achieving a subscription of 122.7% with applications exceeding available shares by Sh3.4 billion. According to latest reports, investors applied for Sh18.4 billion worth of shares at Sh7.50 each while only Sh15 billion worth of shares were available for the Nairobi-based supermarket chain. The company received 18,492 applications and expressed satisfaction with the strong market response, stating that the board was delighted with the strong response from investors.
The IPO allocation was distributed among different investor categories with just over 18,000 Kenyan and East African retail investors receiving a full allocation of 119.6 million shares. As reported by Bloomberg, 44 foreign buyers secured approximately 236 million shares, representing just under half of the foreign allocation sought. The company's shares will begin trading on the Nairobi Securities Exchange on November 12.
Four cornerstone investors are supporting the transaction, including Redwheel Group's RWC Asset Management LLP and 337 Frontier, an investment adviser focused on frontier African equities since 2016. According to Bloomberg, the other two cornerstone investors are the World Bank's International Finance Corp. and the UK's Foreign, Commonwealth and Development Office via its Mobilist program. Following the completion of the offer, these four cornerstone investors will hold 21.6% of the company's shares.
This IPO represents Kenya's second listing of the year after state-run Kenya Pipeline Co.'s offer, marking a tentative revival in the nation's equity capital markets. As reported by Bloomberg, rising share prices have helped create a more favorable backdrop for investors, with Kenya's benchmark stocks gauge gaining 28% in dollar terms this year, placing it among the 10 best performers globally. The company won't issue new stock or receive proceeds from the offer, with current investors using the IPO to reduce their stake.
Sokoni Retail Kenya Ltd., the sole owner, is selling half of its stake in the business. According to Bloomberg, Sokoni serves as the vehicle through which the business's founder, John Kinuthia, and Adenia Partners hold their interests, with the Mauritius-based firm having a controlling stake. Following the completion of the offer, Kenya and East African institutional investors will hold 17.5% of the company, while regional retail buyers will get 5% and foreign investors 5.9%.
