Supermarket chain Quickmart has opened its Sh15 billion initial public offering (IPO), offering investors an opportunity to buy shares at Sh7.50 each ahead of its planned listing on the Nairobi Securities Exchange (NSE).
The offer, which opened on October 5, will run until October 30, with the retailer expected to make its debut on the NSE on November 12.
Quick Mart PLC is offering two billion existing ordinary shares, equivalent to 50 percent of its issued share capital. The shares are being sold by Sokoni Retail Kenya Limited, the company’s selling shareholder, and have a nominal value of Sh0.20 each.
At the IPO price, the offer values Quickmart at Sh30 billion upon listing.
The retailer said it had secured regulatory clearance for the share sale and admission of its entire issued share capital to the NSE’s Main Investment Market Segment (MIMS).
“The Capital Markets Authority (“CMA”) has approved the Offer and the Information Memorandum. The NSE has approved the listing and admission to trading of the Company’s entire issued share capital of 4,000,000,000 Ordinary Shares on the MIMS,” the company said in a notice.
Investors will need to purchase at least 500 shares, with additional applications made in blocks of 100 shares. There is no upper limit on the number of shares an investor can apply for.
The offer is not underwritten and does not provide for an over-allotment option. It is also conditional on achieving a minimum subscription of 75 percent of the shares on offer.
This means that Quickmart must receive and accept valid applications for at least 1.5 billion shares by the close of the offer for the IPO to proceed.
“If the minimum subscription condition is not satisfied, the offer shall not proceed, and all application monies shall be refunded without interest,” reads the notice.
Investors must hold a valid Central Depository and Settlement (CDS) account to receive their shares.
Once submitted, applications cannot be withdrawn or altered unless the issuer provides prior written approval.
Sokoni Retail Kenya will also face a 24-month lock-up period from the date of Quickmart’s NSE listing. The restriction will cover 60 percent of its remaining shareholding following the IPO.
Quickmart plans to announce the outcome of the offer and notify investors of their allocations on November 6.
Qualified institutional investors will be required to make payment on November 10, followed by the allotment of shares, crediting of CDS accounts and processing of any refunds on November 11.
The retailer is scheduled to begin trading on the NSE on November 12.
Quickmart said the timetable remains subject to change and any revisions will be communicated through the press and its website.
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