The UK government’s MOBILIST programme has subscribed for Sh1.94 billion worth of shares in Quickmart Initial Public Offer (IPO), taking about 13 per cent of the retailer’s Sh15 billion offer as the retail chain opens its ownership to public investors.
The investment adds to institutional backing for the initial public offering (IPO), which will see existing shareholders sell half of Quickmart’s issued share capital rather than raise fresh capital for the retailer.
MOBILIST, a public-markets investment programme run by the UK’s Foreign, Commonwealth and Development Office, is subscribing for $15 million (about Sh1.94 billion) in the offer. The subscription represents approximately 13 percent of the offer at the stated shilling equivalent, with final share allotment subject to the IPO terms.
MOBILIST is the UK Government’s flagship public-markets programme. MOBILIST invests capital, delivers technical assistance, conducts research, and builds partnerships to catalyse investment by supporting new products to list on public markets.
The subscription follows a conditional cornerstone commitment by the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, to buy up to Sh1.94 billion ($15 million) worth of shares, subject to approval by its board.
Quickmart’s IPO comprises two billion existing ordinary shares offered by Sokoni Retail Kenya Limited at Sh7.50 apiece.
The offer is scheduled to close at 5pm on October 30, with trading expected to begin on the NSE on November 12, subject to the offer conditions and any changes to the timetable.
“We welcome MOBILIST as an investment partner as we broaden Quickmart’s ownership.” said Group Chief Executive Peter Kang’iri.
“We have built QuickMart around a straightforward proposition: to make fresh food and everyday essentials accessible, run our stores efficiently and reinvest the cash the business generates in disciplined growth.”
“With MOBILIST’s support, our proposed listing will help to realise QuickMart’s ambition to create long-term shareholder value while expanding opportunities for our suppliers, creating jobs, impacting the economy, and bringing convenient, affordable shopping to more communities,” said Group Chief Executive Peter Kangiri.
The investment builds on MOBILIST’s 2024 partnership with the NSE to expand investment opportunities in Kenya’s public markets, including for local institutional investors such as pension funds.
Earlier this year, MOBILIST invested $9 million as a cornerstone investor in the listing of Africa Logistics Properties Industrial Real Estate Investment Trust. It also anchored the Spearhead Africa Infrastructure Fund with about Sh1.2 billion. The fund raised Sh3.4 billion for long-term infrastructure financing in local currency.
MOBILIST’s subscription follows the IFC’s conditional commitment to invest up to a further $15 million. The two commitments could together account for $30 million, or approximately Sh3.88 billion, of the offer if the IFC’s investment receives board approval and both subscriptions proceed on the stated terms.
