Kenyan retailer Quickmart's KSh 7.50 IPO: Sterling Capital says fair value is KSh 6.96

Kenyan supermarket chain Quickmart is offering 2 billion existing shares for sale, 50% of its issued share capital, at a fixed KSh 7.50 each in an initial public offering that closes at 5:00pm East Africa Time on 30 October 2026. Trading on the Nairobi Securities Exchange (NSE) is due to start on 12 November 2026, according to the offer website of Quick Mart PLC.

Kenyan investment firm Sterling Capital puts the fair value of the shares at KSh 6.96, which is 7.2% below the offer price, Capital FM reported on 15 October 2026. Sterling estimates a 2026 dividend of KSh 0.41 a share, a yield of about 5.5% at the offer price.

The seller is Sokoni Retail Kenya Limited, which owns all of Quickmart and, according to Capital FM, is controlled by the investment firm Adenia. This is an offer for sale, so Quickmart issues no new shares and receives no proceeds. The offer website puts net proceeds at about KSh 14.4 billion (about US$111 million), all of it for Sokoni. Capital FM said the sale is expected to raise KSh 15 billion (about US$116 million). Dollar figures here use the Central Bank of Kenya's rate of KSh 129.81 to the dollar, posted on 15 October 2026.

Quickmart said in a statement on 23 September 2026, as reported by Citizen Digital, that it expects to keep funding its expansion mainly from internally generated cash flows. The company targets 10 to 15 new stores a year from 2026 to 2030, according to the same report.

The minimum application is 500 shares, or KSh 3,750 (about US$29), with further applications in multiples of 100 shares. The offer is not underwritten, meaning no bank has promised to take up unsold shares. It goes ahead only if valid applications cover at least 75% of the shares on offer (1.5 billion shares) and the shares are allotted to at least 250 investors. If these conditions are not met, and the Capital Markets Authority (CMA) does not approve waiving or lowering the minimum, the offer lapses and all application money is refunded in full within 14 business days of notice of the lapse.

Applications can be made online at quickmartipo.e-offer.app, on Safaricom's Ziidi Trader, by dialling the USSD code *483*803#, or on a paper form through a placing agent, the offer website says. Retail investors can also apply at any Stanbic Bank Kenya branch. M-Pesa payments go to Paybill 8250250, with an account number made up of 6565650 followed by the six-digit number on the application form. USSD payments are capped at KSh 250,000 each, though applicants may pay more than once. Refunds above KSh 250,000, and refunds to joint or corporate applicants, are paid by bank transfer. Stanbic Bank Kenya Limited is the collection bank.

The International Finance Corporation (IFC), the World Bank Group's private-sector arm, has conditionally agreed to buy about KSh 1.94 billion (about US$15 million) of offer shares. The commitment is subject to conditions that include IFC's own board approval. Citizen Digital reported on 7 October 2026 that this amounts to a 6.5% stake in Quickmart.

Sokoni has agreed not to sell 60% of its remaining shares for 24 months from the listing, the offer website says.

Quickmart runs 72 stores in 16 counties and records about 5 million customer transactions a month, Capital FM reported on 5 October 2026. Revenue for 2025 was KSh 50.4 billion and adjusted profit after tax was KSh 1.7 billion.

Quickmart has set a target payout ratio of 95% for FY2026 and 90% for FY2027, then at least 80% of annual profit after tax, paid twice a year. These are targets, not guarantees, and any dividend is subject to board approval, the offer website says. The first dividend, for the second half of 2026, is expected in the first half of 2027, Capital FM reported on 5 October.

Sterling also said, according to the same Capital FM report of 15 October 2026, that same-store sales growth slowed to 5.7% in FY2025 as customer traffic eased, and that its earnings-per-share forecast for FY2026 is about 7.6% below management guidance. The gap widens to 16% in FY2027, as Sterling takes a more conservative view of margins. The firm named further share sales by Sokoni as a risk, saying they could add selling pressure after listing.

The CMA has approved the offer and the Information Memorandum, dated 2 October 2026, and the NSE has approved the listing of the shares, the offer website says. Applicants need a valid Central Depository and Settlement (CDS) account, according to Biznakenya, a Kenyan business news website.

The offer opened at 9:00am on 5 October 2026. Retail investors must pay by 5:00pm on 30 October. Qualified institutional investors must pay by 5:00pm on 10 November. Results are due on 6 November, and CDS accounts are due to be credited and refunds to begin on 11 November, ahead of the first day of trading on 12 November 2026.