The commitments from the International Finance Corporation, MOBILIST, RWC Asset Management LLP and 337 Frontier Capital LP could account for 47.5 per cent. QUICKMART’s Sh15 billion initial public offering (IPO) has attracted cornerstone investment commitments of up to Sh7.12 billion from four international investors, signalling interest in the Kenyan retailer ahead of its planned listing on the Nairobi Securities Exchange (NSE).
The commitments from the International Finance Corporation (IFC), MOBILIST, RWC Asset Management LLP and 337 Frontier Capital LP could account for 47.5 per cent of the offer if all investors participate at their full disclosed amounts. However, IFC’s commitment of up to $15 million (Sh1.94 billion) remains conditional on approval by its board of directors, meaning the full amount is not yet secured.
The latest commitments come as Quickmart seeks to broaden its ownership base through the sale of existing shares, giving local and international investors an opportunity to acquire stakes in one of Kenya’s largest supermarket chains. In a supplementary information memorandum approved by the Capital Markets Authority (CMA) on October 23, MOBILIST, RWC Asset Management and 337 Frontier disclosed accepted applications totalling approximately $40 million (Sh5.18 billion).
MOBILIST, a United Kingdom government-backed investment programme, has applied for shares worth approximately $15 million (Sh1.94 billion), representing about 13 per cent of the offer. RWC Asset Management has applied for approximately $10 million (Sh1.3 billion), equivalent to 8.7 per cent, while 337 Frontier Capital has applied for approximately $15 million (Sh1.94 billion), also representing about 13 per cent.
IFC's conditional commitment of up to $15 million would bring the combined amount to approximately $55 million, or Sh7.12 billion, at the disclosed exchange rate. All four investors will purchase shares at the offer price of Sh7.50, subject to the applicable offer terms and completion requirements.
Quickmart chief executive Peter Kang’iri said the commitments would help broaden the retailer's ownership while providing opportunities for investors to participate in its long-term growth. “We welcome the commitments from IFC, MOBILIST, RWC Asset Management and 337 Frontier as we broaden Quickmart’s ownership.
The IPO gives Kenyan and regional investors the opportunity to become shareholders alongside international institutions,” he said.