Quickmart Plc., Kenya’s second-largest supermarket chain, has attracted commitments of up to Ksh7.12 billion ($55 million) from four institutional investors for its planned initial public offering (IPO), covering 47.5% of the Ksh15 billion ($115.4 million) share sale as the Kenyan supermarket chain prepares to list on the Nairobi Securities Exchange.

The commitments comprise Ksh5.18 billion ($39.86 million) in applications from MOBILIST, RWC Asset Management LLP and 337 Frontier Capital, alongside a conditional investment of up to Ksh1.94 billion from the International Finance Corporation (IFC), subject to approval by its board.

MOBILIST has applied to invest Ksh1.94 billion ($14.93 million), matching the amount sought by 337 Frontier Capital, while RWC Asset Management has applied for Ksh1.3 billion ($10 million). Quickmart and selling shareholder Sokoni Retail Kenya Limited accepted the three applications following the Capital Markets Authority’s approval of a supplementary information memorandum on October 23.

Quickmart targets $116 million from share sale

Quickmart’s IPO involves the sale of two billion existing shares, representing 50% of its issued share capital, at Ksh7.5 ($0.05) per share. The offer values the retailer at Ksh30 billion ($230.82 million), but the proceeds will go to Sokoni Retail Kenya Limited rather than Quickmart, with no new shares being issued.

The revised allocation provides for 12% of the shares to Kenyan and East African retail investors, 32% to regional institutional investors, 8% to foreign investors and 48% to cornerstone investors.

Quickmart Chief Executive Officer Peter Kang’iri said the IPO would allow Kenyan and regional investors to own shares in the retailer alongside international institutions.

The offer will close by 5 p.m. on October 30, with results and share allocations expected on November 6. Trading on the Nairobi Securities Exchange is scheduled to begin on November 12, subject to the offer conditions.

Founders and investors stand to unlock value

The listing also highlights the wealth created through Quickmart’s growth from two separately founded Kenyan supermarket businesses in 2006 into a national retailer valued at Ksh30 billion ($230.82 million) two decades later.

At the IPO valuation, the underlying Quickmart-linked interests of Group Chief Executive Peter Gathua Kang’iri and founder and Non-Executive Director Duncan Muiruri Kinuthia are valued at approximately Ksh1.62 billion ($12.5 million) and Ksh6.21 billion ($47.8 million), respectively.

The offering could crystallise billions of shillings in value for entrepreneurs and investors associated with the supermarket chain. However, the IPO is a sale of existing shares rather than a primary fundraising exercise, meaning Quickmart will not directly receive the Ksh15 billion ($115.4 million) targeted from the offer.

Lock-up rules leave room for share sales

The Capital Markets Authority has agreed to a lock-up arrangement requiring controlling shareholders to retain their holdings for at least two years after listing, a measure intended to reassure investors that insiders will not quickly exit following the IPO.

However, the reported arrangement allows Quickmart’s anchor shareholders to sell up to 800 million shares, equivalent to 40% of their remaining stake, without restriction. This leaves part of their holdings outside the lock-up requirement.

Quickmart operates 72 stores across 16 Kenyan counties and reported revenue of Ksh50.4 billion ($387.8 million) for the 2025 financial year. Its growth strategy centres on opening new stores, increasing sales at existing outlets, expanding digital channels, and improving operational efficiency, with expansion expected to be funded mainly through internally generated cash.