Quickmart, one of Kenya's largest retail chains, is listing 2 billion ordinary shares, equivalent to 50% of the company, on the Nairobi Securities Exchange (NSE). Priced at Sh7.50 ($0.058) a share, the initial public offering (IPO) values the retailer at Sh30bn ($231m) and is expected to net around Sh15bn ($115m) for its current shareholders.
The IPO, which opened on 5 October, closes on 30 October and requires a minimum subscription of 75% to proceed. Trading on the NSE is targeted for 12 November. Interest from retail investors and fund managers has reportedly been strong after the World Bank's International Finance Corporation (IFC) committed to purchase - pending board approval - up to $15m of the shares on offer. This represents approximately 13% of the IPO and would hand the IFC a 6.5% stake in the retailer.
Martha Osier, a partner at Adenia Partners, the private equity firm that owns a majority stake in Quickmart, says the IPO is a partial exit that allows it to realise the value of its initial investment while still remaining the largest shareholder, says
"What is different about Adenia is that we only invest if we can get a controlling equity stake. We do not take minority stakes," says Osier, who oversees Adenia's operations in East Africa.
Originally published by African Business.