MPs press CMA over safeguards in Quickmart’s KSh 15 billion share sale
A parliamentary committee has asked the Capital Markets Authority whether buyers of Quickmart shares are protected. Money from the KSh 15 billion offer goes to the seller, Sokoni Retail Kenya, and not to the supermarket chain.
MPs have pressed the Capital Markets Authority (CMA) to scrutinise public share offers more closely, Capital FM reported. They warned that ordinary Kenyans could lose money if they buy shares without understanding a company's finances and risks. The challenge came from the National Assembly Public Investments Committee on Commercial Affairs and Energy. Quickmart's share sale was at the centre of it. In the offer, Sokoni Retail Kenya Limited is selling two billion existing shares at KSh 7.50 each. Investors applied for KSh 18.41 billion worth of shares, an oversubscription of 22.7 percent. Because an existing shareholder is selling, the KSh 15 billion goes to the seller. Quickmart itself gets no new capital from the deal. Nairobi Woman Representative Esther Passaris asked whether buyers had been clearly told what this means. The deal has been described as a partial exit by private equity investor Adenia and the company's founders. The committee, chaired by Pokot South MP David Pkosing, also questioned CMA's checks. Members asked whether the regulator had properly examined Quickmart's financial position, operating cash flows and supplier obligations before approving the offer. MPs pointed to the collapse of the Uchumi and Nakumatt supermarkets. They said those failures should shape how…
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