Quickmart has secured about Ksh5.2 billion in fresh investor commitments after admitting three new cornerstone investors to its initial public offering (IPO), increasing the allocation reserved for anchor investors to nearly half of the shares on offer.
The retailer announced that the United Kingdom’s Mobilising Institutional Capital Through Listed Product Structures (MOBILIST), RWC Asset Management LLP and 337 Frontier Capital LP have joined the IPO as cornerstone investors alongside the International Finance Corporation (IFC).
The latest commitments have prompted a revision of the share allocation structure for the Ksh15 billion offer, with cornerstone investors now set to receive 960 million shares worth Ksh7.2 billion, equivalent to 48 per cent of the two billion shares being sold.
The changes were disclosed in a supplementary information memorandum approved by the Capital Markets Authority (CMA) and published ahead of the October 30 closure of the offer.
KSh5.2 Billion Fresh Commitments
According to the memorandum, MOBILIST and 337 Frontier have each applied for approximately KSh1.94 billion worth of shares, translating to about 13 per cent of the offer.
RWC Asset Management LLP has separately committed approximately KSh1.3 billion, representing about 8.7 per cent of the shares on offer.
Combined, the three investors have committed about KSh5.2 billion, providing a major boost to the IPO ahead of Quickmart’s planned listing on the Nairobi Securities Exchange (NSE).
The company said IFC will remain a cornerstone investor under the terms of the original information memorandum, although its participation remains subject to approval by its board of directors.
The admission of the three new investors means large institutional investors now back a substantial portion of the offer before the IPO closes.
Cornerstone investors are guaranteed allocations matching their committed applications and are not subject to scale-backs in the event of oversubscription.
The memorandum further states that no cornerstone investor will receive more shares than the amount applied for, but their allocations will be protected from reductions that may affect other investor categories.
“Cornerstone Investors shall not be subject to any scale-back. Each Cornerstone Investor shall be allotted Offer Shares in full up to the amount of its committed Application, and such allotment shall not be subject to any pro rata reduction or any other form of scaling back, whether by reason of oversubscription by any other Investor Category, oversubscription of the Offer as a whole or otherwise,” Quickmart stated.
Quickmart Overhauls IPO Share Allocation Structure
Following the admission of the new cornerstone investors, Quickmart has revised the distribution of the two billion shares on offer.
Kenyan retail and East African retail investors will receive 240 million shares valued at Ksh1.8 billion, representing 12 per cent of the offer.
Kenyan and East African institutional investors will receive 640 million shares worth Ksh4.8 billion, or 32 percent of the offer.
Foreign investors will receive 160 million shares valued at Ksh1.2 billion, or 8 per cent of the offer.
The biggest share has been reserved for cornerstone investors, who will receive 960 million shares worth KSh7.2 billion, accounting for 48 per cent of the entire transaction.
Despite the revised allocations, Quickmart said all other terms of the offer remain unchanged.
The retailer is offering two billion ordinary shares at KSh7.50 each, representing 50 per cent of its issued share capital.
The minimum subscription requirement remains 75 per cent of the shares on offer, equivalent to 1.5 billion shares.
The IPO will close on October 30, with results and allocations expected on November 6. Qualified institutional investors will make payments on November 10, while share allotments and refunds, where applicable, will be processed on November 11.
Quickmart is expected to begin trading on the NSE’s Main Investment Market Segment on November 12, marking one of Kenya’s biggest stock market listings in recent years.
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