Quickmart founders who sought to increase their ownership in the supermarket chain through its initial public offering (IPO) have been denied additional shares worth nearly KSh890 million after the offer attracted more demand than the available stock.
Five applications from founder shareholders seeking to purchase a combined 118.67 million shares valued at KSh889.9 million were rejected during the final allocation of the retailer's IPO, according to disclosures published after the offer closed.
The shares were priced at KSh7.50 each, meaning the founders had sought to invest almost KSh890 million more in the business as other shareholders prepared to sell part of their holdings.
Quickmart said no offer shares were allocated to founder shareholders who applied because the IPO was oversubscribed. The company did not identify the five applicants.
The outcome suggests that some of the supermarket's original owners were interested in increasing their exposure to the retailer even as the listing opened the business to outside investors.
The IPO attracted applications for 2.45 billion shares against the two billion shares available, translating into an oversubscription of 22.7 per cent. Applications were valued at KSh18.41 billion, exceeding the KSh15 billion target by approximately KSh3.41 billion.
The strong demand meant some institutional investors also received fewer shares than they had requested. British-backed Mobilist agreed to reduce its allocation by approximately US$5 million, equivalent to about KSh649 million, to create room for other investors.
The International Finance Corporation (IFC), the World Bank's private-sector investment arm, was also allocated fewer shares than its original application, while other institutional investors received their full requested allocations.
Quickmart's chief executive, Peter Kang'iri, and other company employees were treated differently from the founders. Staff applications, including those submitted by the CEO, received full allocation, with the group applying for shares worth approximately KSh520.6 million.
The IPO involved the sale of two billion existing shares, representing 50 per cent of Quickmart's issued share capital, by Sokoni Retail Kenya Limited. The transaction was therefore a partial exit for existing shareholders rather than a fresh capital injection into the supermarket business.
The original shareholders are expected to receive gross proceeds of KSh15 billion from the sale, while retaining a combined 50 per cent stake in the retailer.
Quickmart operates 72 stores across 16 counties and reported revenue of KSh50.4 billion in 2025. Its shares are scheduled to begin trading on the Nairobi Securities Exchange on November 12, 2026.
The founders' unsuccessful bids highlight the competition for ownership of one of Kenya's largest supermarket chains as its stock market debut attracts interest from local investors, international institutions and the public.
