Professional advisers and market regulators stand to collect about Sh575.6 million from Quickmart’s initial public offering, one of the larger fee pools on the Nairobi Securities Exchange this year as the supermarket’s controlling shareholder sells half the company.
Business Daily and Streamline Feed reported that the bill covers transaction advice, legal work, accounting, marketing and regulatory charges. Sokoni Retail Kenya Limited, the selling shareholder, will pay the costs and keep net proceeds of about Sh14.4 billion if the offer is fully taken up.
How the fee pot breaks down
According to the IPO expense estimates cited by Business Daily, advisers including SBG Securities, Stanbic Bank, Dyer and Blair Investment Bank and Coulson Harney LLP are to share Sh476.2 million. Marketing and advertising are put at Sh70 million, Capital Markets Authority and Nairobi Securities Exchange fees at Sh24 million, and miscellaneous costs at Sh5.3 million.
SBG Securities is lead transaction adviser, sponsoring broker and lead placing agent. Stanbic is a lead transaction adviser and receiving bank; Dyer and Blair is co-placing agent. Coulson Harney, trading as Bowmans in Kenya, is legal adviser. Ernst & Young LLP are reporting accountants, Image Registrars is data processing agent and share registrar, Creide Limited handles public relations and Adili Corporate Services Kenya LLP advises on corporate governance.
Quickmart said the estimated expenses equal about 3.8 per cent of gross proceeds, or Sh0.29 per offer share.
An exit, not a capital raise
Current owners are selling two billion ordinary shares at Sh7.50 each, for a gross value of Sh15 billion and a company valuation of about Sh30 billion. The offer opened on October 5 and closes on October 30, with listing on the Main Investment Market Segment targeted for mid-November, African Capital Markets News reported.
Unlike a primary issue that puts cash into the company, this is an offer for sale. Proceeds go to Sokoni, not to Quickmart’s balance sheet. After the sale Sokoni is expected to retain half the equity, subject to lock-up terms disclosed in the information memorandum.
The retailer reported net profit of Sh1.5 billion last year, up from Sh1.1 billion in 2024, with sales of Sh50.4 billion from Sh46.7 billion as it opened more stores, Business Daily said. Once listed it would be the second publicly traded supermarket on the NSE after Uchumi, whose operations later collapsed under creditor pressure.
Investors weighing the book will compare the advisory cost and secondary structure with recent listings: Kenya Pipeline Company’s IPO generated about Sh2.99 billion in combined adviser and regulator fees on a much larger raise, while Family Bank’s introduction listing cost Sh77.2 million.
Retail and warehouse hiring tends to rise when chains expand; openings at Quickmart and peers are regularly listed on Job in Kenya for candidates tracking supermarket and supply-chain roles.
Sources: Business Daily | Streamline Feed | African Capital Markets News
Photo: Yahya / Wikimedia Commons (CC BY-SA 4.0)
