Quick Mart PLC has received approval from the Capital Markets Authority to raise Ksh 15 billion through an Initial Public Offering. The retailer is offering 2 billion existing ordinary shares held by Sokoni Retail Kenya Limited to investors at an offer price of Ksh 7.50 per share. This development marks a significant milestone in Quick Mart's journey, with the company slated to list on the Main Investment Market Segment of the Nairobi Securities Exchange in November.
The IPO opens with a minimum application of 500 shares, equivalent to Ksh 3,750, and in multiples of 100 shares thereafter. The offer closes at the end of October. Quickmart, valued at Ksh 30 billion in market capitalization, currently operates 72 stores across 16 countries. The company aims to use the new capital to fund its expansion across the region, targeting to open 10-15 new stores annually under its 2026–2030 growth strategy.
The International Finance Corporation has conditionally committed to purchasing up to Ksh 1.94 billion in Offer Shares, representing up to approximately 13% of the Offer and 6.5% of Quickmart's outstanding share capital. However, the IFC still awaits approval from its board of directors. The company's Group Chief Executive Officer, Peter Kang'iri, expressed enthusiasm for the IPO, highlighting Quick Mart's focus on price, convenience, and freshness.
Quickmart's growth strategy focuses on urban, peri-urban, regional, and coastal markets, with plans to open over 100 stores in Kenya over the medium term. The company's board intends to target a dividend payout ratio of at least 80% of annual profit after tax, paid semi-annually, subject to the company's financial performance and applicable legal requirements.
The IPO marks an important step in Quick Mart's journey, with the company having expanded its national footprint and strengthened its operating platform over the past two decades. Kang'iri emphasized the company's commitment to serving its customers and maintaining the operating discipline that has supported its growth.
Following the listing, Quickmart will join the ranks of companies on the Nairobi Securities Exchange, providing investors with an opportunity to own a stake in the retailer. The company's valuation at Ksh 30 billion reflects its significant presence in the East African market.
Quickmart's expansion plans and commitment to dividend payouts are expected to attract investors seeking growth opportunities in the retail sector. The company's focus on urban and peri-urban markets is likely to drive growth, as it seeks to increase its market share in the region.
Key points
- Quickmart to raise Ksh 15 billion through IPO, offering 2 billion shares at Ksh 7.50 each.
- The company targets to open 10-15 new stores annually under its 2026–2030 growth strategy.
- Quickmart's board intends to target a dividend payout ratio of at least 80% of annual profit after tax.
