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Transcript

Investing with Ziidi Trader: Opportunities in the Quickmart IPO · The Mwango Capital Podcast

• 0:00
  SPEAKER_00: A very good evening, everyone, and a warm welcome to Mwango Spaces.
• 0:03
  SPEAKER_00: Thank you so much for making time to be with us this evening.
• 0:06
  SPEAKER_00: As we discuss investing with ZD Gator,
• 0:10
  SPEAKER_00: opportunities in the Kukmat and Gangote IPOs, we will be talking about ZD.
• 0:17
  SPEAKER_00: What opportunities can investors deal on with ZD Trader App?
• 0:23
  SPEAKER_00: Earlier this year,
• 0:24
  SPEAKER_00: Safaricom,
• 0:24
  SPEAKER_00: in partnership with the Nairobi Securities Exchange and Kestrel Capital,
• 0:29
  SPEAKER_00: launched ZD Trader,
• 0:30
  SPEAKER_00: enabling Kenyans to buy and sell shares directly through the Mpesa app.
• 0:35
  SPEAKER_00: Through ZD, they have transformed businesses.
• 0:38
  SPEAKER_00: So that is what we will be talking about today.
• 0:57
  SPEAKER_00: Take advantage of the opportunities in the QuickMart and Dangote IPOs through ZD Trader.
• 1:03
  SPEAKER_00: So the launch of ZD Trader app comes amid renewed activity
• 1:08
  SPEAKER_00: in Kenya's capital markets, including QuickMart's 15 billion Kenya shillings IPO.
• 1:14
  SPEAKER_00: Offering 2 billion shares at 7 shillings and 50 cents each.
• 1:19
  SPEAKER_00: And opportunities to invest in Dangota Refinery through Global Depository Receipts, GDRs.
• 1:26
  SPEAKER_00: So basically,
• 1:27
  SPEAKER_00: beyond market access,
• 1:29
  SPEAKER_00: important questions are being raised about investment risk,
• 1:33
  SPEAKER_00: valuations,
• 1:34
  SPEAKER_00: transaction costs, share ownership, allotment, and what happens after listing.
• 1:39
  SPEAKER_00: So today, we will explore how ZD Trader works.
• 1:42
  SPEAKER_00: How investors can get started and its potential to expand retail participation.
• 1:49
  SPEAKER_00: We'll also examine quick match performance.
• 1:51
  SPEAKER_00: We will look at how they have performed financially.
• 1:54
  SPEAKER_00: We'll look at the IPO valuation and cornerstone investors alongside opportunities
• 2:00
  SPEAKER_00: and risks associated with the Dangote offering.
• 2:03
  SPEAKER_00: So joining me today are three gentlemen,
• 2:06
  SPEAKER_00: one from Kestrel, CFO of Kwikmat, and David Carney, who is the portfolio lead.
• 2:11
  SPEAKER_00: I will let them introduce themselves.
• 2:13
  SPEAKER_00: And we have Francis Mwangi, who is the CEO of Kestrel Capital joining us.
• 2:18
  SPEAKER_00: Simon Osharia,
• 2:18
  SPEAKER_00: who is the CFO of Kwikmat,
• 2:20
  SPEAKER_00: and David Carney, who is the portfolio lead, Wealth and Empowerment.
• 2:24
  SPEAKER_00: Quick disclaimer,
• 2:25
  SPEAKER_00: this discussion is for information purposes only
• 2:29
  SPEAKER_00: and this discussion does not constitute investment advice.
• 2:33
  SPEAKER_00: Investors should review the relevant prospectuses
• 2:36
  SPEAKER_00: and assess their investment objectives and risk tolerance.
• 2:40
  SPEAKER_00: So without further ado, allow me to introduce our guests.
• 2:44
  SPEAKER_00: Let's begin with brief introductions.
• 2:47
  SPEAKER_00: Francis,
• 2:47
  SPEAKER_00: Simon and David,
• 2:48
  SPEAKER_00: kindly introduce yourselves and briefly explain to us about your roles.
• 2:53
  SPEAKER_00: We'll start with you, Francis.
• 2:55
  SPEAKER_03: Thank you, Nicole.
• 2:56
  SPEAKER_03: And it's great to be here for this call and to have a discussion
• 2:59
  SPEAKER_03: with my fellow panelists and of course with everyone else who's on the call.
• 3:03
  SPEAKER_03: As has been mentioned, my name is Francis Mwangi, CEO of Kestrel Capital.
• 3:06
  SPEAKER_03: And we're definitely greatly honored to have partnered with Safaricom
• 3:09
  SPEAKER_03: to launch ZD Trader in February of this year.
• 3:12
  SPEAKER_03: As has been captured in the introduction,
• 3:14
  SPEAKER_03: ZD Trader's main objective was
• 3:16
  SPEAKER_03: to simplify how investors access Kenya's capital markets.
• 3:20
  SPEAKER_03: And then beyond simplification,
• 3:22
  SPEAKER_03: as we'll see on this call,
• 3:23
  SPEAKER_03: is also to improve how majority of the Kenyans have access to credible,
• 3:28
  SPEAKER_03: reliable information to be able to get the investment decisions.
• 3:31
  SPEAKER_03: Otherwise, I'm happy to be here and I look forward to engaging with everyone else as we proceed.
• 3:35
  SPEAKER_03: Thank you.
• 3:38
  SPEAKER_01: Good evening and thank you for having me.
• 3:40
  SPEAKER_01: I am Simon Mashadi.
• 3:41
  SPEAKER_01: I'm the Chief Financial Officer at QuickMart.
• 3:44
  SPEAKER_01: I joined QuickMart as CFO in 2018 when the business was still family-owned, family-led.
• 3:52
  SPEAKER_01: I've seen the growth in the business, including the investment by Adenia in 2019.
• 4:00
  SPEAKER_01: And we have scaled the business and we are at a point where now we are
• 4:05
  SPEAKER_01: the next phase of growth.
• 4:07
  SPEAKER_01: And I know that we'll dive into that in a few.
• 4:09
  SPEAKER_01: Thank you.
• 4:11
  SPEAKER_00: Last but not least, David, please introduce yourself.
• 4:14
  SPEAKER_02: Thank you, Nicole.
• 4:15
  SPEAKER_02: And thank you everyone who is on call today.
• 4:17
  SPEAKER_02: My name is David Kanye.
• 4:18
  SPEAKER_02: I lead Wealth and Empowerment at Safaricom,
• 4:21
  SPEAKER_02: where I take care of driving the platform's growth,
• 4:24
  SPEAKER_02: partnerships,
• 4:25
  SPEAKER_02: investment engagements,
• 4:26
  SPEAKER_02: and building products within the larger Safaricom Wealth portfolio.
• 4:29
  SPEAKER_02: The ZDTrader platform is Safaricom's digital investment platform designed
• 4:34
  SPEAKER_02: to make participation In capital markets are simple,
• 4:37
  SPEAKER_02: affordable and accessible to every Kenyan,
• 4:40
  SPEAKER_02: with our broader vision being to democratize wealth by removing traditional barriers
• 4:44
  SPEAKER_02: that are historically limited in participation in financial markets.
• 4:48
  SPEAKER_02: Our role is to ensure that as we empower and transform Kenyans,
• 4:51
  SPEAKER_02: we want every Kenyan,
• 4:53
  SPEAKER_02: regardless of income level or location,
• 4:55
  SPEAKER_02: geographic location,
• 4:56
  SPEAKER_02: to access investment opportunities,
• 4:59
  SPEAKER_02: build long-term wealth and participate in the growth of businesses and economies.
• 5:03
  SPEAKER_02: Thank you.
• 5:04
  SPEAKER_02: Happy to be here.
• 5:05
  SPEAKER_00: Great.
• 5:06
  SPEAKER_00: Let's kick off the discussion.
• 5:07
  SPEAKER_00: And I want to start with you, David.
• 5:11
  SPEAKER_00: Give us a better understanding of ZDTrader.
• 5:14
  SPEAKER_00: What exactly is ZDTrader?
• 5:16
  SPEAKER_00: How does it work?
• 5:17
  SPEAKER_00: And how does it differ from your traditional stockbroking platforms?
• 5:22
  SPEAKER_02: Thank you.
• 5:23
  SPEAKER_02: So ZDTrader is a fully digital investment platform that really enables investors
• 5:28
  SPEAKER_02: to access listed securities and capital market products conveniently
• 5:32
  SPEAKER_02: through their mobile devices.
• 5:34
  SPEAKER_02: As Francis mentioned earlier,
• 5:35
  SPEAKER_02: we launched this platform early on this year,
• 5:38
  SPEAKER_02: in February,
• 5:39
  SPEAKER_02: where we allowed all our SafariCom customers who have been able
• 5:44
  SPEAKER_02: to access our SafariCom One App to access the NSC through our ZDTrader platform.
• 5:50
  SPEAKER_02: Unlike traditional investment channels that often require multiple touchpoints
• 5:55
  SPEAKER_02: and significant paperwork,
• 5:57
  SPEAKER_02: ZDTrader prioritizes the simplicity of access,
• 6:00
  SPEAKER_02: convenience,
• 6:01
  SPEAKER_02: And also the digital self-service where you are able
• 6:05
  SPEAKER_02: to access all these opportunities at the touch of a button on your mobile device.
• 6:09
  SPEAKER_02: And then investors,
• 6:10
  SPEAKER_02: of course,
• 6:11
  SPEAKER_02: both local and abroad can onboard,
• 6:13
  SPEAKER_02: fund their investments and monitor their portfolios all through
• 6:16
  SPEAKER_02: a seamless digital experience.
• 6:19
  SPEAKER_02: The way we have designed the platform is to progressively offer access to equities
• 6:24
  SPEAKER_02: that include IPOs.
• 6:26
  SPEAKER_02: I think if you look at the horizon of how the stock market has,
• 6:30
  SPEAKER_02: over the years,
• 6:30
  SPEAKER_02: developed and morphed out,
• 6:32
  SPEAKER_02: is that initially for you to access a trading account,
• 6:33
  SPEAKER_02: you had to go through your stock broker, fill in a load of paperwork,
• 6:54
  SPEAKER_02: Get that approval,
• 6:55
  SPEAKER_02: open a CDS account,
• 6:56
  SPEAKER_02: and then of course,
• 6:57
  SPEAKER_02: gain access, go back to the stockbroker for you to provide instructions on trading.
• 7:01
  SPEAKER_02: So we have collapsed all that through a digital platform that is ZD Trader,
• 7:06
  SPEAKER_02: which if you do not have ZD Trader,
• 7:07
  SPEAKER_02: you need to go to your App Store or Play Store and download your Safari Combo 1 app.
• 7:13
  SPEAKER_02: And within the Safari Compone app is a mini app as a trader that then you opt in and
• 7:18
  SPEAKER_02: then it gets you access into the opportunities available on all listings on
• 7:23
  SPEAKER_02: the Nanobi Securities Exchange.
• 7:25
  SPEAKER_00: You mentioned the partnership with Kestrel Capital.
• 7:28
  SPEAKER_00: David, or maybe Francis, you can take this question.
• 7:31
  SPEAKER_00: Tell us, what role does Kestrel Capital play in facilitating transactions?
• 7:36
  SPEAKER_03: Thank you, Nicole.
• 7:37
  SPEAKER_03: So the role of customer capital is really clean and straightforward,
• 7:40
  SPEAKER_03: and David did allude to this.
• 7:42
  SPEAKER_03: So what makes ZD different is that it's a partnership between two regulated entities.
• 7:48
  SPEAKER_03: So Safari form on their side,
• 7:50
  SPEAKER_03: bring to the table the investor wallet,
• 7:53
  SPEAKER_03: which forms the core of movement of funds into ZD and out of ZD for enough funds
• 7:58
  SPEAKER_03: to buy securities.
• 8:00
  SPEAKER_03: And when I find some securities,
• 8:02
  SPEAKER_03: terminal stock to the Anfersa wallet, which is a regulated wallet.
• 8:06
  SPEAKER_03: And then on the Kestrel side, there's ownership and holding of shares.
• 8:10
  SPEAKER_03: So when someone uses a CD Trader to buy shares,
• 8:13
  SPEAKER_03: then those shares need to be held somewhere and they need to be held directly with
• 8:17
  SPEAKER_03: the entity.
• 8:18
  SPEAKER_03: And that entity in this particular arrangement is Kestrel.
• 8:21
  SPEAKER_03: And then also when someone keys an order either to buy or sell,
• 8:24
  SPEAKER_03: if there's a problem in executing that order,
• 8:27
  SPEAKER_03: then it's Castrol's role in partnership with Safarico to ensure that
• 8:31
  SPEAKER_03: the client's order is executed.
• 8:34
  SPEAKER_03: Or if there's an error that the client has begged accordingly.
• 8:37
  SPEAKER_03: The other key role for Kestrel in this partnership
• 8:40
  SPEAKER_03: for ZD Trader is they collect dividends on behalf of the various users and transmit
• 8:47
  SPEAKER_03: that to Safari Comfort subsequent distribution to the investors.
• 8:51
  SPEAKER_03: And then also the other key role for Kestrel is to represent all the ZD Trader users
• 8:58
  SPEAKER_03: or investors in the various securities when it comes to AGMs.
• 9:01
  SPEAKER_03: So Kestrel will go represent any party who's holding the currencies at the point of Beijing.
• 9:06
  SPEAKER_03: Also, it's a very collaborative partnership between Kestrel and Safaricom.
• 9:11
  SPEAKER_03: But more importantly for the users is that both Kestrel
• 9:14
  SPEAKER_03: and Safaricom are regulated entities, thus,
• 9:17
  SPEAKER_03: therefore,
• 9:17
  SPEAKER_03: safeguarding the money and also safeguarding the securities that investors hold.
• 9:23
  SPEAKER_00: I will move over to you, David.
• 9:25
  SPEAKER_00: You can paint this picture for us.
• 9:27
  SPEAKER_00: So we have someone who is looking to make their first investment.
• 9:30
  SPEAKER_00: Walk us through the process of opening an account, purchasing shares through ZD Trader.
• 9:35
  SPEAKER_00: You had earlier mentioned about making it easy to access investment opportunities by
• 9:41
  SPEAKER_00: the top of your phone.
• 9:42
  SPEAKER_00: So explain to us, what does this look like?
• 9:44
  SPEAKER_00: What are the minimum investment requirements and can Kenyans who are abroad participate?
• 9:49
  SPEAKER_00: David.
• 9:50
  SPEAKER_02: The onboarding process is really designed to be digital and intuitive.
• 9:55
  SPEAKER_02: So the way we have done this is that as an investor customer,
• 9:58
  SPEAKER_02: we of course have collected a lot of your data in terms of KYC information
• 10:03
  SPEAKER_02: by just ticking the box around the requirements by the regulator.
• 10:07
  SPEAKER_02: And working,
• 10:07
  SPEAKER_02: of course,
• 10:08
  SPEAKER_02: symbiotically with Kester to be able to set up your account, a digital account.
• 10:12
  SPEAKER_02: And provide you with the access credentials to access the stock market.
• 10:16
  SPEAKER_02: For customers who don't already have the initial capital market account,
• 10:19
  SPEAKER_02: ZD Trader simplifies the process by guiding them through the required steps
• 10:23
  SPEAKER_02: and integrations.
• 10:25
  SPEAKER_02: So objective is mainly to keep investment thresholds as low as possible and
• 10:29
  SPEAKER_02: to encourage the broader participation,
• 10:30
  SPEAKER_02: including young people,
• 10:32
  SPEAKER_02: the first time investors,
• 10:34
  SPEAKER_02: investors or Kenyans who are living abroad, have access to our Safari Com 1 app.
• 10:40
  SPEAKER_02: We also
• 10:45
  SPEAKER_02: see a lot of significant potential for Kenyans in the diaspora and continue
• 10:49
  SPEAKER_02: to enhance their accessibility for investors, particularly of their location.
• 10:54
  SPEAKER_02: So basically our minimum requirement is for you to be a SafariCom customer,
• 10:58
  SPEAKER_02: first and foremost,
• 10:59
  SPEAKER_02: have the SafariCom 1up activated and also be a mobile money customer.
• 11:04
  SPEAKER_02: And then of course,
• 11:04
  SPEAKER_02: then with that,
• 11:05
  SPEAKER_02: we give you access to a ZD Trader where you opt into the terms and conditions
• 11:09
  SPEAKER_02: that are provided.
• 11:10
  SPEAKER_02: After that, we allow access to entities within the ZD Trader app.
• 11:15
  SPEAKER_02: And the ZD Trader app mainly allows you to look at when the market wants to look
• 11:20
  SPEAKER_02: at opportunities within the exchange,
• 11:22
  SPEAKER_02: tap into whichever opportunity you'd want to buy.
• 11:25
  SPEAKER_02: And it's an instant process.
• 11:26
  SPEAKER_02: And the first step is for you to identify the security.
• 11:29
  SPEAKER_02: And of course,
• 11:29
  SPEAKER_02: I'm sure Francis is here to provide customers with the opportunity to understand
• 11:34
  SPEAKER_02: or advisory in terms of to understand which securities they would want to engage in.
• 11:38
  SPEAKER_02: And that's why we've partnered with Castrol Capital.
• 11:41
  SPEAKER_02: And then after that,
• 11:41
  SPEAKER_02: then it allows you to indicate how many shares you want to buy
• 11:45
  SPEAKER_02: or indicate how much money you want to spend on a specific security.
• 11:49
  SPEAKER_02: And then the backend engine then computes the number of shares that you want to buy.
• 11:53
  SPEAKER_02: And then the final step is just for you to confirm that with your MPSA pin.
• 11:58
  SPEAKER_02: And then the money moves from a better account in and allows you to access and buy
• 12:02
  SPEAKER_02: the security.
• 12:02
  SPEAKER_02: So it's a three-step process, easy, very intuitive and engaging.
• 12:06
  SPEAKER_02: And it allows you to become a shareholder of all the listed companies that we have
• 12:09
  SPEAKER_02: on the page by the touch of the bottom in the three steps.
• 12:13
  SPEAKER_00: Now to Simon, please tell us about QuickMaths.
• 12:17
  SPEAKER_00: How did the business start?
• 12:18
  SPEAKER_00: Pay for us the journey into becoming one of Kenya's leading store market chief.
• 12:23
  SPEAKER_00: And what distinguishes QuickMart's business model from its competitor?
• 12:28
  SPEAKER_00: Also, as you answer this, Simon,
• 12:30
  SPEAKER_00: please take us through your store network,
• 12:32
  SPEAKER_00: customer base, your financial performance, and your long-term growth strategy.
• 12:37
  SPEAKER_01: I'm happy to take you through a brief summary of Quikmat.
• 12:40
  SPEAKER_01: We started in the year 2006.
• 12:42
  SPEAKER_01: We are actually celebrating 20 years since we started.
• 12:46
  SPEAKER_01: We started in Nakuru and the company was started as a family business.
• 12:51
  SPEAKER_01: And then we got our first store in Nairobi in 2010.
• 12:54
  SPEAKER_01: That was in Lwai.
• 12:56
  SPEAKER_01: And in 2018, Adenia
• 13:00
  SPEAKER_01: Capital had invested in Tumaini,
• 13:03
  SPEAKER_01: and then later on, they also put in a controlling stake in Kwikmat in 2019.
• 13:10
  SPEAKER_01: And beginning of 2020, there was a decision to merge the two entities.
• 13:14
  SPEAKER_01: Actually,
• 13:14
  SPEAKER_01: beginning of 2020,
• 13:15
  SPEAKER_01: we learned Kwikmat as a consolidated entity,
• 13:19
  SPEAKER_01: putting together the businesses, Tumaini and Kwikmat together.
• 13:24
  SPEAKER_01: And after the merger process,
• 13:26
  SPEAKER_01: we opened 10 stores in 2020,
• 13:28
  SPEAKER_01: another 10 stores in 2021, followed by another 10 stores in 2022.
• 13:33
  SPEAKER_01: Then 2023, we scrolled a bit.
• 13:36
  SPEAKER_01: We opened four stores.
• 13:38
  SPEAKER_01: Then in 2024, we opened one store.
• 13:41
  SPEAKER_01: And last year we opened four stores.
• 13:42
  SPEAKER_01: This year we've already opened eight stores.
• 13:44
  SPEAKER_01: So we are currently at 72 stores.
• 13:47
  SPEAKER_01: And we have one more store to go as per our plan.
• 13:51
  SPEAKER_01: Looking at how our performance has evolved, I just summarized just a few lines.
• 13:58
  SPEAKER_01: One is our turnover.
• 14:00
  SPEAKER_01: In the last five years, our turnover has increased from 25.7 billion to 50.4 billion.
• 14:07
  SPEAKER_01: So the turnover has doubled, a compounded annual growth rate of 18.4%.
• 14:12
  SPEAKER_01: And then when you look at your profitability has grown four times from 0.4 billion
• 14:17
  SPEAKER_01: in 2021 to 1.7 billion revenue.
• 14:21
  SPEAKER_01: This year,
• 14:23
  SPEAKER_01: we project that we are going to close the year at $58.2 billion
• 14:27
  SPEAKER_01: and we are making very good progress from that.
• 14:31
  SPEAKER_01: So it has disciplined growth that we have grown not only in terms of sales.
• 14:37
  SPEAKER_01: Also profitability.
• 14:38
  SPEAKER_01: Profitability coming from the fact that we have managed to negotiate better margins
• 14:45
  SPEAKER_01: with suppliers.
• 14:45
  SPEAKER_01: Of course, this is natural.
• 14:47
  SPEAKER_01: When you increase skills, you're able to get better trading conditions.
• 14:50
  SPEAKER_01: So if you look at our gross profits,
• 14:52
  SPEAKER_01: We have increased from 21.1% in 2021 to 22% last year,
• 14:59
  SPEAKER_01: so a 0.9% growth, which is significant in this market.
• 15:03
  SPEAKER_01: But at the same time, the cash flows.
• 15:04
  SPEAKER_01: We have also done a lot of work in terms of ensuring that our cash generation continues to grow.
• 15:12
  SPEAKER_01: And last year we closed with the free cash flows of 3.5 billion.
• 15:17
  SPEAKER_01: And with that level,
• 15:18
  SPEAKER_01: we are able to pay for our capex and at the same time pay dividend
• 15:22
  SPEAKER_01: for our shareholders.
• 15:24
  SPEAKER_01: And the company has also managed to pay off all the debt, all the bank borrowings that we had.
• 15:29
  SPEAKER_01: We had borrowed a bit,
• 15:31
  SPEAKER_01: particularly in 2021 and 2022 when we were opening quite a number of stores and
• 15:36
  SPEAKER_01: then our base was small.
• 15:39
  SPEAKER_01: So we had relied a bit in terms of debt, but we have since repaid it.
• 15:43
  SPEAKER_01: At Bank Free,
• 15:44
  SPEAKER_01: our stores,
• 15:45
  SPEAKER_01: all the stores that we have are unprofitable,
• 15:48
  SPEAKER_01: and the CAPEX return, or what we call the payback period, is between $20.
• 15:54
  SPEAKER_01: So with that model that we are able to scale profitably and in
• 15:59
  SPEAKER_01: a very disciplined manner,
• 16:00
  SPEAKER_01: there's a lot of work that goes in terms of ensuring that we open quality stores.
• 16:05
  SPEAKER_01: Actually across the globe,
• 16:07
  SPEAKER_01: it's very unusual for a retailer not to have closed a store and also not
• 16:12
  SPEAKER_01: to have some stores that are generating losses,
• 16:16
  SPEAKER_01: which is the case for Quick Mountain.
• 16:17
  SPEAKER_01: I would say it's quite some disciplined growth.
• 16:20
  SPEAKER_01: Stores are profitable and we are able to return the capital within three years.
• 16:25
  SPEAKER_01: And that has helped us to feel that we don't have debt.
• 16:28
  SPEAKER_01: We pay very attractive dividends as we have done in the past.
• 16:31
  SPEAKER_01: And looking at your question on long-term growth strategy.
• 16:35
  SPEAKER_01: We have reflected on it in our IM that in the next few years to the year 2030,
• 16:40
  SPEAKER_01: we will have 125 stores.
• 16:43
  SPEAKER_01: We've already identified a number of those stores.
• 16:46
  SPEAKER_01: And the idea is that we need to grow quickly from the current 16 counties to
• 16:52
  SPEAKER_01: at least 30 counties.
• 16:53
  SPEAKER_01: And a number of areas that we have mapped that we need to grow our business to.
• 16:58
  SPEAKER_01: And this growth will be funded by our internally generated funds.
• 17:02
  SPEAKER_01: That's what we've reflected on.
• 17:04
  SPEAKER_02: As we have done in the last
• 17:06
  SPEAKER_01: three years,
• 17:07
  SPEAKER_01: that we've not required to access any external funding for our growth.
• 17:13
  SPEAKER_01: As having said that, we still have a pipeline of debt.
• 17:16
  SPEAKER_01: It's only that we are not using it.
• 17:17
  SPEAKER_01: So should we need to?
• 17:19
  SPEAKER_01: We already have some pipeline.
• 17:22
  SPEAKER_01: We are confident that we are going to grow using our internally generated funds.
• 17:31
  SPEAKER_01: The next question you asked about the difference between our model from competitors.
• 17:37
  SPEAKER_01: We are a neighborhood retailer.
• 17:39
  SPEAKER_01: That's why we avoid malls.
• 17:41
  SPEAKER_01: We are predominantly in your neighborhood.
• 17:45
  SPEAKER_01: Very easy access.
• 17:46
  SPEAKER_01: Then over 65% of our business is food.
• 17:49
  SPEAKER_01: We are very big on food.
• 17:51
  SPEAKER_00: Simon seems to be experiencing a bit of a technical glitch.
• 17:55
  SPEAKER_00: As we get our team to assist Simon, Francis, I want to switch to you.
• 18:01
  SPEAKER_00: Please walk us through the process of an investor placing an order,
• 18:05
  SPEAKER_00: say a buy or sell order of 5,000 Kenya shillings through ZD Trader.
• 18:11
  SPEAKER_00: What happens behind the scenes?
• 18:12
  SPEAKER_00: How are the transactions executed?
• 18:15
  SPEAKER_00: What charges apply?
• 18:16
  SPEAKER_00: And what security does the client have?
• 18:20
  SPEAKER_00: And how quickly can investors sell their holdings and access their money?
• 18:24
  SPEAKER_00: Francis.
• 18:25
  SPEAKER_03: So in terms of the process of what happens is you need to find your investor wallet first.
• 18:30
  SPEAKER_03: So once your investor wallet is funded, then you go to ZDTrader.
• 18:34
  SPEAKER_03: Then on ZDTrader, you'll be able to see the full list of securities that are available.
• 18:40
  SPEAKER_03: The full list of securities that are available.
• 18:42
  SPEAKER_03: And each security that is available,
• 18:44
  SPEAKER_03: of course,
• 18:44
  SPEAKER_03: which is the NSV in this particular instance,
• 18:47
  SPEAKER_03: you will see the logo of the particular security, because logos are more familiar.
• 18:51
  SPEAKER_03: And then for each security under each logo,
• 18:53
  SPEAKER_03: there is a small description of what the company does.
• 18:57
  SPEAKER_03: And the purpose of having that small description is to ensure that for the person
• 19:01
  SPEAKER_03: before they shoot their trade,
• 19:03
  SPEAKER_03: they are a bit informed in terms of which decision they're making.
• 19:07
  SPEAKER_03: So once it goes to a Met,
• 19:08
  SPEAKER_03: then someone needs to decide amongst the 65 or so listed companies on the NSE
• 19:13
  SPEAKER_03: which one they want to buy.
• 19:14
  SPEAKER_03: They'll place an order to buy as they're buying.
• 19:17
  SPEAKER_03: And what that entails is to pick the number of shares they want to buy and then pick the price.
• 19:23
  SPEAKER_03: And for price-significant purposes,
• 19:25
  SPEAKER_03: they have the option of just selecting the market order,
• 19:28
  SPEAKER_03: which means that then the buy order will match the first seller.
• 19:32
  SPEAKER_03: Right.
• 19:32
  SPEAKER_03: Right.
• 19:33
  SPEAKER_03: Right.
• 19:52
  SPEAKER_03: So one farmer now makes the decision to put a market order,
• 19:55
  SPEAKER_03: or what we call a limit order,
• 19:58
  SPEAKER_03: and limit order here being $1 to $9 shillings and not $10 shillings,
• 20:01
  SPEAKER_03: what is the market order,
• 20:03
  SPEAKER_03: and then the order is pushed to the NSE for execution,
• 20:06
  SPEAKER_03: so an important The point here is that that particular order is not held somewhere
• 20:11
  SPEAKER_03: before it's pushed to the NSE.
• 20:12
  SPEAKER_03: As soon as someone clicks from their lead trader hub,
• 20:16
  SPEAKER_03: confirm buy, then that order goes straight to the NSE.
• 20:21
  SPEAKER_03: For total cost, it's a questioning question.
• 20:23
  SPEAKER_03: So before executing the order,
• 20:25
  SPEAKER_03: or before the user confirms their purchase order,
• 20:28
  SPEAKER_03: is that what they'll need to do is they will see the various costs and various taxes
• 20:34
  SPEAKER_03: and statutory costs that apply.
• 20:36
  SPEAKER_03: So they will see the total cost of, say, buying 100 shares at 9 shillings.
• 20:41
  SPEAKER_03: So they will see the full breakdown,
• 20:42
  SPEAKER_03: the 900, plus all other related costs, and they will not be required to confirm.
• 20:47
  SPEAKER_03: Once they confirm,
• 20:49
  SPEAKER_03: then they will need to put in their bin and their order goes into the market.
• 20:53
  SPEAKER_03: And if the market,
• 20:54
  SPEAKER_03: if the order is executed,
• 20:56
  SPEAKER_03: then once they open their VD trader up again and go to their portfolio,
• 21:01
  SPEAKER_03: they will see that now they have balanced 100 shares at nine shares.
• 21:05
  SPEAKER_03: And Nicole, I hope that's clear on the buy side.
• 21:07
  SPEAKER_00: That's clear on my end.
• 21:10
  SPEAKER_00: Thank you very much for walking us through that process.
• 21:13
  SPEAKER_00: I quickly want to go to David.
• 21:16
  SPEAKER_00: Slipmatch is offering 2 billion existing shares at 7 shillings
• 21:20
  SPEAKER_00: and 50 cents per share, and they're targeting 15 billion.
• 21:25
  SPEAKER_00: So maybe if you could...
• 21:27
  SPEAKER_00: Talk us through how the offer price was determined and what makes QuickMart
• 21:33
  SPEAKER_00: an attractive investment at this valuation and how should investors assess
• 21:38
  SPEAKER_00: the company's profitability,
• 21:40
  SPEAKER_00: the expansion prospects,
• 21:41
  SPEAKER_00: the dividend policy and the risks,
• 21:44
  SPEAKER_00: especially given the possibility of shares trading below the offer price
• 21:49
  SPEAKER_00: after listing.
• 21:50
  SPEAKER_02: Thanks, Nicole.
• 21:50
  SPEAKER_02: I think I'll leave my question to Simon, given he's only determined the price of the security.
• 21:55
  SPEAKER_02: And probably be able to also give us a bit of kind around the dividend pay amount and ratios.
• 22:00
  SPEAKER_00: All right.
• 22:00
  SPEAKER_00: But are you back?
• 22:02
  SPEAKER_01: Yes, I'm back.
• 22:02
  SPEAKER_01: Sorry to interrupt again.
• 22:04
  SPEAKER_01: But as I was saying, in terms of our strategy, that we are not in malls.
• 22:09
  SPEAKER_01: And then we are your convenient neighborhood retailer.
• 22:13
  SPEAKER_01: And that is the value that we have continued to generate over the years.
• 22:17
  SPEAKER_01: There has been quite a lot of work we have done in terms of ensuring that we adhere
• 22:21
  SPEAKER_01: to good corporate governance practices.
• 22:23
  SPEAKER_01: And that is usable even from the strong financial performances
• 22:27
  SPEAKER_01: that we have generated over the last five years.
• 22:29
  SPEAKER_01: Now, speaking about valuation.
• 22:31
  SPEAKER_01: The work that was done,
• 22:33
  SPEAKER_01: particularly by our transaction advisory team,
• 22:37
  SPEAKER_01: in terms of doing what we call the pre-deal investor education,
• 22:42
  SPEAKER_01: and also in terms of undertaking independent valuation analysis that were subjected
• 22:48
  SPEAKER_01: to validation exercise by the various analysts,
• 22:51
  SPEAKER_01: Including testing with the various local investment funds and also outside
• 22:56
  SPEAKER_01: the country.
• 22:57
  SPEAKER_01: So the price that is stated is also inclusive of a discount.
• 23:03
  SPEAKER_01: There's a benchmark analysis that was done and we spoke about that.
• 23:09
  SPEAKER_01: And I know that there's a document that is already available public that talks about
• 23:13
  SPEAKER_01: the valuation approaches that were used.
• 23:16
  SPEAKER_01: To ensure that there is an element of discount that was also included.
• 23:20
  SPEAKER_01: But having said that, of course, investors make their independent decisions to invest.
• 23:26
  SPEAKER_01: But from where I see it is a very good asset.
• 23:28
  SPEAKER_01: There's a lot of work that has gone into ensuring that Quikmat grows to the levels
• 23:32
  SPEAKER_01: that we have grown so far.
• 23:35
  SPEAKER_01: And that we are in a position where we are able to scale the business
• 23:38
  SPEAKER_01: without any need for a capital call.
• 23:40
  SPEAKER_01: And at the same time, we are known by our suppliers as the best premaster in this industry.
• 23:47
  SPEAKER_01: Quite disciplined and also a lot of work that we have done in terms
• 23:50
  SPEAKER_01: of inventory management to dividends.
• 23:53
  SPEAKER_01: We've reflected on that in our IAM, that we have a payout ratio of at least 80%.
• 23:59
  SPEAKER_01: This year, we've already distributed 1.3 billion.
• 24:03
  SPEAKER_01: But this year, we are going to distribute a total of 2 billion.
• 24:05
  SPEAKER_01: So there's still some 700 million that we are going to distribute after year ahead.
• 24:11
  SPEAKER_01: And then,
• 24:12
  SPEAKER_01: of course,
• 24:13
  SPEAKER_01: following the good corporate governance practices,
• 24:16
  SPEAKER_01: is that we're going to be ratified by Shiaola sometimes next year as we go along.
• 24:22
  SPEAKER_00: I want us to now talk about retail and institutional allocation.
• 24:42
  SPEAKER_00: Walk us through what informed this distribution,
• 24:45
  SPEAKER_00: especially for the relatively small retail allocation.
• 24:49
  SPEAKER_00: And how does Quikmat intend to balance institutional demand with its objective
• 24:54
  SPEAKER_00: of broadening public ownership?
• 24:56
  SPEAKER_00: Simon, you can take that.
• 24:59
  SPEAKER_00: I seem to be encountering a bit of a challenge with Simon.
• 25:05
  SPEAKER_00: Seem to have a bit of a challenge with his connection.
• 25:08
  SPEAKER_00: So allow me to ask, especially for Francis, once the IPO closes, what happens next?
• 25:18
  SPEAKER_00: If applications accept?
• 25:20
  SPEAKER_00: Francis, walk us through what the timelines are looking like.
• 25:40
  SPEAKER_03: Avoid talking about day,
• 25:41
  SPEAKER_03: because I might be off for a few days,
• 25:45
  SPEAKER_03: but we'll talk extensively about the process,
• 25:48
  SPEAKER_03: and then maybe when someone joins us,
• 25:50
  SPEAKER_03: he can touch more specifically on the exact day.
• 25:53
  SPEAKER_03: So the way he talks is that they're off-up on And up until
• 26:00
  SPEAKER_03: that stage,
• 26:01
  SPEAKER_03: all the investors, including ZD Trader users, are eligible to apply for the IPO.
• 26:07
  SPEAKER_03: And they are not restricted in terms of number of shares.
• 26:10
  SPEAKER_03: They can apply for it.
• 26:11
  SPEAKER_03: And of course,
• 26:11
  SPEAKER_03: the other advantage for ZD Trader is that someone can apply at midnight,
• 26:15
  SPEAKER_03: as long as it's not midnight on Friday, 5th, which is at the day it's closing, 5pm.
• 26:20
  SPEAKER_03: And also someone can apply over the weekend.
• 26:22
  SPEAKER_03: So come 5th of October, the offer will be closed.
• 26:26
  SPEAKER_03: And then the next week or so,
• 26:29
  SPEAKER_03: quick months,
• 26:29
  SPEAKER_03: the advisors,
• 26:31
  SPEAKER_03: the registrar will be doing tally just to check how many shares have been received.
• 26:36
  SPEAKER_03: I have all shares that have been applied, all been paid for.
• 26:40
  SPEAKER_03: And then now they'll have a full view of the food register.
• 26:43
  SPEAKER_03: So once they see that food register is when they'll be able to decide and determine
• 26:47
  SPEAKER_03: at first level is has the offer been fully taken up?
• 26:51
  SPEAKER_03: If it's fully subscribed and oversubscribed,
• 27:01
  SPEAKER_03: then the information memorandum has very clear parameters in terms
• 27:06
  SPEAKER_03: of how allocation will happen across the various subcategories of investors.
• 27:12
  SPEAKER_03: If it's undersubscribed,
• 27:13
  SPEAKER_03: then of course,
• 27:14
  SPEAKER_03: it means investors,
• 27:15
  SPEAKER_03: as they have applied for, will secretly receive 100% of their allocation.
• 27:20
  SPEAKER_03: If it's rightly subscribed to this video, then investors also are entitled to receive 100%.
• 27:27
  SPEAKER_03: Or what they applied for.
• 27:29
  SPEAKER_03: Specifically for ZD Trader users,
• 27:31
  SPEAKER_03: what they really want is that we will also follow those timelines.
• 27:34
  SPEAKER_03: And when the shares become available,
• 27:37
  SPEAKER_03: or we call it allotments,
• 27:39
  SPEAKER_03: they will be put and reflect on all ZD Trader users' accounts.
• 27:44
  SPEAKER_03: I remember the section I mentioned earlier,
• 27:46
  SPEAKER_03: if someone buys,
• 27:47
  SPEAKER_03: they just need to go to their portfolio section of the ZD Trader account
• 27:51
  SPEAKER_03: and they'll see what they've called.
• 27:53
  SPEAKER_03: So when the shares become allotted is that one will be able to go there.
• 27:58
  SPEAKER_03: And once the shares start trading on 2003,
• 28:02
  SPEAKER_03: end of November,
• 28:03
  SPEAKER_03: I don't remember the dates off the top of my mind at the moment,
• 28:06
  SPEAKER_03: then they will be able to trade from day number one, the shares.
• 28:10
  SPEAKER_03: So the process and the time before the IPO closes is very clear.
• 28:14
  SPEAKER_03: The process of determining whether an IPO has been fully subscribed.
• 28:19
  SPEAKER_03: There's no uncertainty in the process and that is clearly captured.
• 28:23
  SPEAKER_03: And in the event of any material item happening, then there's always a provision in the company.
• 28:41
  SPEAKER_03: But that's where the issuer,
• 28:43
  SPEAKER_03: in this case,
• 28:44
  SPEAKER_03: quick mark can go back to the regulators and ask for a revision of the dates
• 28:48
  SPEAKER_03: or some sort of revision.
• 28:50
  SPEAKER_03: But typically we find that such transactions are mostly tend to stick to
• 28:54
  SPEAKER_03: the outlying dates in the information memorial.
• 28:57
  SPEAKER_02: Maybe Nicole, if I can chime in a bit on just what Francis has said before Simon comes in.
• 29:02
  SPEAKER_02: When you Excel CDTrader on the homepage, are you able to see the ticker that has all the stocks?
• 29:08
  SPEAKER_02: And of course, you'll also be able to see the IPOs on offer.
• 29:11
  SPEAKER_02: So on one side,
• 29:12
  SPEAKER_02: you'll see we have QuickMart IPO and also the Dungwater GDR,
• 29:16
  SPEAKER_02: which is closing tomorrow.
• 29:17
  SPEAKER_02: So based on that, once you view the offer, it is able to show you the description of the offer.
• 29:24
  SPEAKER_02: It will be able to give you a summary if you've already started.
• 29:27
  SPEAKER_02: If it's your first time,
• 29:28
  SPEAKER_02: then it will also give you an opportunity to access the bidding process.
• 29:32
  SPEAKER_02: But the most important thing is that it also gives you the key dates,
• 29:36
  SPEAKER_02: as Francis has described,
• 29:37
  SPEAKER_02: in terms of when the offer open,
• 29:39
  SPEAKER_02: when it will close,
• 29:41
  SPEAKER_02: when they will meet the announcements after closure,
• 29:43
  SPEAKER_02: when the payment of qualified institutional investors will be,
• 29:46
  SPEAKER_02: when crediting of CDSAs will be,
• 29:48
  SPEAKER_02: and that is an allotment,
• 29:50
  SPEAKER_02: and then when the listing and commitment of trading will be.
• 29:53
  SPEAKER_02: So all those dates are provided as information.
• 29:55
  SPEAKER_02: Again, this is extracted from the IM that the Quikmata has provided.
• 30:00
  SPEAKER_02: And once you're on that page,
• 30:01
  SPEAKER_02: then you can also Apply now,
• 30:03
  SPEAKER_02: which is part of now the journey into getting to the application,
• 30:06
  SPEAKER_02: where it also showcases you the price of the offer and then allows you to indicate
• 30:11
  SPEAKER_02: the number of shares that you'd want to buy.
• 30:13
  SPEAKER_02: And of course,
• 30:14
  SPEAKER_02: that means that you should have loaded your Mpesa because again,
• 30:17
  SPEAKER_02: it computes the total value,
• 30:18
  SPEAKER_02: checks whether you have enough Mpesa on your account for you to continue.
• 30:23
  SPEAKER_02: If you have enough Mpesa,
• 30:24
  SPEAKER_02: you will be able to just continue and pick in your PIN and then it will deduct
• 30:29
  SPEAKER_02: from your Mpesa and push the application.
• 30:31
  SPEAKER_02: If you do not have enough money, it will tell you that you do not have enough money.
• 30:34
  SPEAKER_02: And at that point,
• 30:34
  SPEAKER_02: you need to top up your investor so that you're able to continue
• 30:37
  SPEAKER_02: the application process.
• 30:38
  SPEAKER_02: Thank you.
• 30:39
  SPEAKER_02: I thought I should say that for clarity.
• 30:40
  SPEAKER_02: Thank you.
• 30:41
  SPEAKER_00: Thank you.
• 30:42
  SPEAKER_00: So very quickly, what should investors pay particular attention to even before the offer closes?
• 30:48
  SPEAKER_00: David, you can take that.
• 30:50
  SPEAKER_02: Of course, there are the respective timelines that have been given.
• 30:53
  SPEAKER_02: Practice has mentioned about the timelines closure.
• 30:56
  SPEAKER_02: That is on Friday, 30th of October, with a strict timeline.
• 31:00
  SPEAKER_02: I think I was mentioned that you can apply anytime on the trader,
• 31:04
  SPEAKER_02: well before that closure date.
• 31:05
  SPEAKER_02: I think the other thing that investors should be on the lookout
• 31:07
  SPEAKER_02: for is more information so that they make the informed decisions
• 31:10
  SPEAKER_02: on this application.
• 31:11
  SPEAKER_02: I think there's a lot of information out there that is being provided.
• 31:14
  SPEAKER_02: Simon is here to answer some of those questions for the ones on call.
• 31:17
  SPEAKER_02: And if you go to their page, they are also giving a lot of feedback.
• 31:21
  SPEAKER_02: Kestri Capital is also available to provide,
• 31:23
  SPEAKER_02: and also all other brokers are available to provide information to all investors so
• 31:27
  SPEAKER_02: that they can give comfort in terms of the value they are getting into.
• 31:29
  SPEAKER_02: And of course,
• 31:30
  SPEAKER_02: if they have any question,
• 31:31
  SPEAKER_02: all the parties who are the transaction parties are available to give clarification
• 31:35
  SPEAKER_02: to all investors.
• 31:36
  SPEAKER_02: But most importantly is to appreciate the money you're buying, why you're buying the stock.
• 31:41
  SPEAKER_02: And I think the call is the privilege to have someone here who can explain some of
• 31:45
  SPEAKER_02: the questions that have been there,
• 31:46
  SPEAKER_02: the myths that have been out there in social media.
• 31:50
  SPEAKER_02: Thank you for that.
• 31:51
  SPEAKER_02: Frances and David, let's talk about dividend payments.
• 31:53
  SPEAKER_02: How will someone get the dividends once they have been announced?
• 31:56
  SPEAKER_02: And also please walk us through how you intend to process refunds.
• 32:19
  SPEAKER_01: Sorry, before they come in,
• 32:20
  SPEAKER_01: maybe I could, sorry,
• 32:21
  SPEAKER_01: I got interrupted,
• 32:23
  SPEAKER_01: but let me shed, there's a question you had asked me about their locations.
• 32:27
  SPEAKER_01: I would say the free fruit that is available is still significant.
• 32:31
  SPEAKER_01: Remember,
• 32:32
  SPEAKER_01: we have issued 2 billion shares,
• 32:35
  SPEAKER_01: so there's still quite some significant free fruit that is available.
• 32:39
  SPEAKER_01: Again, there's also what we call a green shoe option of up to 15%,
• 32:44
  SPEAKER_01: should there be So our retail investors,
• 32:48
  SPEAKER_01: we have already taken care of you and will ensure that their location,
• 32:52
  SPEAKER_01: which will be undertaken after 30 years,
• 32:56
  SPEAKER_01: also ensures that we have quite a sizable free float that talks to ensuring
• 33:02
  SPEAKER_01: that we have the retail investors.
• 33:04
  SPEAKER_01: Actually,
• 33:04
  SPEAKER_01: that was one of the major objectives for which we went to listing,
• 33:08
  SPEAKER_01: which is to ensure that Kenyan company That is owned by Kenyans.
• 33:13
  SPEAKER_01: We have our sales, 74% of our sales come from loyal customers.
• 33:17
  SPEAKER_01: So we are very keen to ensure that the people that we've grown with Also have
• 33:21
  SPEAKER_01: a stake in the business.
• 33:24
  SPEAKER_01: So that to take into account.
• 33:25
  SPEAKER_01: Then there was a question about timelines.
• 33:28
  SPEAKER_01: The offer closes on the 30th of October, which is this slide.
• 33:32
  SPEAKER_01: And then after the offer closes,
• 33:35
  SPEAKER_01: should there be an oversubscription and there will be need for refunds,
• 33:38
  SPEAKER_01: that will be done on the 11th of November.
• 33:41
  SPEAKER_01: And then the shares should start trading on the 12th of November.
• 33:45
  SPEAKER_01: So those are the timelines that we do have.
• 33:47
  SPEAKER_01: I really encourage us to ensure that we take part when we do apply.
• 33:54
  SPEAKER_00: Simon, I want us to talk about the retail and institutional allocation.
• 33:58
  SPEAKER_00: The IPO's indicative allocation currently stands at 48% for Cornerstone Investors.
• 34:04
  SPEAKER_00: 32% for Kenya and East African institutions,
• 34:08
  SPEAKER_00: 12% for retail investors and 8% for foreign investors.
• 34:11
  SPEAKER_00: Walk us through this distribution,
• 34:13
  SPEAKER_00: especially the relatively small retail allocation and how QuickMart intends
• 34:18
  SPEAKER_00: to balance both digital demand with its objective of broadening public ownership.
• 34:25
  SPEAKER_01: Yes, as I had mentioned, what we are looking at is the actual applications.
• 34:29
  SPEAKER_01: And that's why I encourage as many of us are interested in putting the applications to do so.
• 34:35
  SPEAKER_01: Because what will happen after we are closed in terms of the offer,
• 34:39
  SPEAKER_01: we will look at the applications that we've received.
• 34:42
  SPEAKER_01: And then remember, there's a green shoe option.
• 34:45
  SPEAKER_01: That means that if there's an oversubscriptions at their option,
• 34:49
  SPEAKER_01: the shareholders who are selling 50% of their shareholding can increase the number
• 34:55
  SPEAKER_01: of shares that are available.
• 34:57
  SPEAKER_01: But again, The allocation will be based on the levels of applications that we do have.
• 35:02
  SPEAKER_01: The free float is quite significant.
• 35:04
  SPEAKER_01: So I expect that as we do the applications, the allocations will be fairly done.
• 35:10
  SPEAKER_01: Of course,
• 35:10
  SPEAKER_01: we have our investment advisors who will ensure that all of the parties
• 35:15
  SPEAKER_01: that have submitted the application, that a fair allocation is under ticket.
• 35:21
  SPEAKER_00: Please walk us through the Cornerstone Investors.
• 35:24
  SPEAKER_00: How much has been formally accepted versus what remains conditional
• 35:29
  SPEAKER_00: and what does their participation signal about institutional confidence in
• 35:34
  SPEAKER_00: the business?
• 35:35
  SPEAKER_01: I don't want to speak about how they made up their decision.
• 35:38
  SPEAKER_01: Of course,
• 35:38
  SPEAKER_01: they did their own due diligence,
• 35:40
  SPEAKER_01: which we also encourage any other investor to undertake.
• 35:44
  SPEAKER_01: So we are still in the process where we are accepting the applications.
• 35:48
  SPEAKER_01: So the decisions as to the allocations will be undertaken once the offer closure period is done.
• 35:56
  SPEAKER_01: We've seen a lot of interest,
• 35:58
  SPEAKER_01: not only from the cornerstone investors, but also from the local investors.
• 36:02
  SPEAKER_01: From where we sit, we are very clear it's a very good asset.
• 36:05
  SPEAKER_01: And we look forward as management to continue managing this business for posterity.
• 36:10
  SPEAKER_01: So I will keep emphasizing the need for us to ensure that if we do want
• 36:16
  SPEAKER_01: to take part, that we do take part.
• 36:18
  SPEAKER_01: The offer is only a few days to come on Friday it closes and then all investors,
• 36:24
  SPEAKER_01: their all interests will be taken into account.
• 36:27
  SPEAKER_00: Thank you very much, Simon.
• 36:29
  SPEAKER_00: Back to David and Francis.
• 36:32
  SPEAKER_00: Please tell us,
• 36:33
  SPEAKER_00: once dividends have been announced,
• 36:36
  SPEAKER_00: how will someone know that they have gotten them and how do you intend
• 36:39
  SPEAKER_00: to process refunds?
• 36:40
  SPEAKER_02: Francis, do you want me to go first or do you want to go?
• 36:43
  SPEAKER_02: That's fine, David, you can go first.
• 36:44
  SPEAKER_02: Thank you.
• 36:45
  SPEAKER_02: So we followed the corporate action calendar.
• 36:47
  SPEAKER_02: Upon announcement on dividends,
• 36:48
  SPEAKER_02: the first thing,
• 36:49
  SPEAKER_02: of course,
• 36:49
  SPEAKER_02: is to record the announcement,
• 36:51
  SPEAKER_02: which all the customers or shareholders or investors who
• 36:56
  SPEAKER_02: That particular counter are notified.
• 36:58
  SPEAKER_02: And then the next thing is also to note the book closure date,
• 37:01
  SPEAKER_02: which is the record date in which we confirm that you are an investor on
• 37:06
  SPEAKER_02: the register, the close of the books.
• 37:08
  SPEAKER_02: And with that, then you keep that record as you wait for the payment to be announced.
• 37:12
  SPEAKER_02: And once that is done,
• 37:13
  SPEAKER_02: then we will receive the notification from the registrar through Kestra
• 37:17
  SPEAKER_02: who will receive the funds and then of course confirm the file that had been paid
• 37:22
  SPEAKER_02: and they must have been paid to the investor's of a particular counter or security
• 37:28
  SPEAKER_02: at a particular date.
• 37:29
  SPEAKER_02: And then we'll pick that and then of course,
• 37:32
  SPEAKER_02: with regards to the book closure dates and the record date,
• 37:35
  SPEAKER_02: the investors therein will receive the dividends in their M-Pesa wallet.
• 37:41
  SPEAKER_02: So what we've done is that we're ensuring that upon receipt of the funds,
• 37:44
  SPEAKER_02: we transmit those funds back to the investors immediately once the funds are created
• 37:48
  SPEAKER_02: to the main account that now services the dividend account for the investors.
• 37:53
  SPEAKER_02: Now, the most important thing is that on the trader,
• 37:57
  SPEAKER_02: as I've said earlier,
• 37:58
  SPEAKER_02: as you're tracking your portfolio,
• 38:00
  SPEAKER_02: it's able to provide that information so that you're able to know
• 38:03
  SPEAKER_02: that either there's an expected dividend coming your way.
• 38:06
  SPEAKER_02: Because remember, some investors will have invested post their closure date.
• 38:11
  SPEAKER_02: So, of course,
• 38:11
  SPEAKER_02: those ones are not eligible because they,
• 38:13
  SPEAKER_02: of course, will buy those share X dividends.
• 38:16
  SPEAKER_02: So the ones who would be on pressure date will be notified.
• 38:18
  SPEAKER_02: And of course,
• 38:19
  SPEAKER_02: then they will be expecting that based on the calendar or the listed company
• 38:23
  SPEAKER_02: in terms of the payment date.
• 38:25
  SPEAKER_02: Faces you can add if there's anything I've forgotten,
• 38:27
  SPEAKER_02: but also in terms of the refund,
• 38:29
  SPEAKER_02: upon the allotment,
• 38:30
  SPEAKER_02: we expect that if there is any oversubscription and the amount is determined
• 38:35
  SPEAKER_02: in terms of the uptake,
• 38:37
  SPEAKER_02: whatever refunds that will be Available will be transmitted back to
• 38:41
  SPEAKER_02: the investor's wallet directly,
• 38:44
  SPEAKER_02: on the M-Pesa wallet directly,
• 38:45
  SPEAKER_02: once we get that feedback from QuickMight for example.
• 38:48
  SPEAKER_00: Around how long do we expect the refunds to take place?
• 38:51
  SPEAKER_02: So refunding is immediate because again,
• 38:53
  SPEAKER_02: remember once the allotment is done,
• 38:56
  SPEAKER_02: once Simon and team have credited and agreed this is the allotment,
• 39:00
  SPEAKER_02: then on 11th of November,
• 39:02
  SPEAKER_02: we expect that then they will be rewriting back to call the transaction,
• 39:07
  SPEAKER_02: the teams to give feedback on the SIN.
• 39:10
  SPEAKER_02: And then, of course, the funds will be reverted back to those teams.
• 39:13
  SPEAKER_02: And then,
• 39:13
  SPEAKER_02: of course, for us,
• 39:14
  SPEAKER_02: we pick up what would have been communicated to customers for us to revert back to
• 39:17
  SPEAKER_02: the customers, which will be an immediate disbursement back to their M-Pesa wallet.
• 39:22
  SPEAKER_00: There's a very fun question that is coming along.
• 39:25
  SPEAKER_00: We have a user who is asking,
• 39:27
  SPEAKER_00: can investors use Poliza to buy shares through ZDKDA
• 39:31
  SPEAKER_00: or must they have sufficient funds in the M-Pesa wallet?
• 39:35
  SPEAKER_02: Another general question that is coming from the audience is how long will it take
• 39:38
  SPEAKER_02: for dividends to reflect in an investor's trader account after
• 39:41
  SPEAKER_02: the company's official payment date?
• 40:02
  SPEAKER_02: As I said earlier,
• 40:03
  SPEAKER_02: once the payment date is confirmed and the funds are received from the issuer,
• 40:07
  SPEAKER_02: then for us, we just process that the following day.
• 40:09
  SPEAKER_02: Depending on the time that you have received the file,
• 40:11
  SPEAKER_02: if you've received the file early,
• 40:13
  SPEAKER_02: then we transact that and push that to the customers.
• 40:16
  SPEAKER_02: If it's after hours,
• 40:17
  SPEAKER_02: then the following day in the morning,
• 40:18
  SPEAKER_02: then we will receive that and forward that to customers and their account.
• 40:22
  SPEAKER_00: I want us to switch gears to the Dangote Refinery IPO.
• 40:27
  SPEAKER_00: So Kenyans have been offered exposure to the Dangote Refinery IPO to GDRs.
• 40:33
  SPEAKER_00: So walk us through what investors should understand about GDR ownership,
• 40:39
  SPEAKER_00: custody arrangements,
• 40:41
  SPEAKER_00: foreign exchange exposure, and the difference between GDRs and ordinary shares.
• 40:47
  SPEAKER_00: You can take us through that, Francis.
• 40:49
  SPEAKER_03: In the simplest way I can describe a GDR,
• 40:53
  SPEAKER_03: it's an asset that derives its value from the underlying asset that it's holding.
• 40:58
  SPEAKER_03: So put another way is that this is Nagota GDR.
• 41:01
  SPEAKER_03: So what's the purpose of the Nagota GDR?
• 41:04
  SPEAKER_03: It's to only hold Nagota ships.
• 41:07
  SPEAKER_03: And why use GDRs?
• 41:08
  SPEAKER_03: GDRs are popular instruments globally.
• 41:11
  SPEAKER_03: Because what they try and do is first of all,
• 41:13
  SPEAKER_03: number one,
• 41:13
  SPEAKER_03: is to provide easy access to assets that are in foreign jurisdictions
• 41:18
  SPEAKER_03: or different jurisdictions and assets that bind you for
• 41:22
  SPEAKER_03: a different currency compared to the investor's home currency.
• 41:26
  SPEAKER_03: So it's,
• 41:27
  SPEAKER_03: in essence,
• 41:27
  SPEAKER_03: a vehicle that is put together,
• 41:29
  SPEAKER_03: or even you can say loosely,
• 41:30
  SPEAKER_03: it's a company that is put together and its sole purpose is to hold the shares
• 41:36
  SPEAKER_03: of Lidangote, in our instance.
• 41:38
  SPEAKER_03: So how it works on the backend is,
• 41:41
  SPEAKER_03: so as a Kenyan,
• 41:41
  SPEAKER_03: you apply to participate in the GTR here,
• 41:46
  SPEAKER_03: your money is collected here,
• 41:47
  SPEAKER_03: it's converted into Lyra, and then it's applied for the IPO.
• 41:53
  SPEAKER_03: And once it's applied to the ICO,
• 41:55
  SPEAKER_03: from what you've discussed with the FIGMA,
• 41:56
  SPEAKER_03: is that there's also a similar process of an opening date,
• 42:00
  SPEAKER_03: closing date,
• 42:01
  SPEAKER_03: subscription announcement date,
• 42:02
  SPEAKER_03: oversubscription and subscription, and then the shares are made available.
• 42:07
  SPEAKER_03: So in the case of the GDR,
• 42:09
  SPEAKER_03: when the shares are made available,
• 42:11
  SPEAKER_03: They are made available into this GDR company that now starts holding these shares
• 42:17
  SPEAKER_03: through custodial accounts in Nigeria.
• 42:20
  SPEAKER_03: And then on the side of Kenya,
• 42:23
  SPEAKER_03: it's in essence just borrowing the value of the equivalent in Kenya Shinnings
• 42:30
  SPEAKER_03: of those shares that we studied in Nigeria.
• 42:32
  SPEAKER_03: So there are two levels here,
• 42:34
  SPEAKER_03: is that the Ndangota shares will be held by a broker,
• 42:38
  SPEAKER_03: the same way shares in Kenya are held by brokers.
• 42:41
  SPEAKER_03: And then now on this side, the GDR will just be a reflection of the value of those shares.
• 42:48
  SPEAKER_03: So it makes it more simplified from an access perspective and then also from
• 42:52
  SPEAKER_03: a price tracking perspective.
• 43:11
  SPEAKER_03: Because the investor from the day of listing will be able to look at the share of
• 43:16
  SPEAKER_03: the GDR in considering terms and assess the level of returns.
• 43:20
  SPEAKER_00: But very quickly,
• 43:21
  SPEAKER_00: David and Francis,
• 43:22
  SPEAKER_00: I want us to talk about retail participation and investor education.
• 43:27
  SPEAKER_00: So with platforms such as ZD Trader reducing barriers
• 43:29
  SPEAKER_00: to capital market participation,
• 43:31
  SPEAKER_00: what trends are you seeing emerging in retail investor activity,
• 43:36
  SPEAKER_00: transaction sizes, and investor behavior?
• 43:39
  SPEAKER_00: Also, how can investors avoid treating IPOs as opportunities for quick profits
• 43:44
  SPEAKER_00: and instead build diversified long-term investment portfolios?
• 43:50
  SPEAKER_02: So what you're seeing,
• 43:51
  SPEAKER_02: I think, like I said, over the last couple of years, you've seen the markets change.
• 43:56
  SPEAKER_02: If you look at from the early 2000s,
• 43:58
  SPEAKER_02: when it was very manual,
• 44:00
  SPEAKER_02: all the way to when we went to automated trading, we had a CDF system.
• 44:05
  SPEAKER_02: And now looking at opportunities where you're able to trade T plus zero.
• 44:10
  SPEAKER_02: Before that,
• 44:11
  SPEAKER_02: in the onset in the early 2000s,
• 44:12
  SPEAKER_02: it was T plus anything above 21 days and came down to T plus seven,
• 44:17
  SPEAKER_02: T plus five, T plus three.
• 44:18
  SPEAKER_02: What we are witnessing is growing interest from younger
• 44:21
  SPEAKER_02: and digitally connected investors who are seeking alternative ways to save
• 44:25
  SPEAKER_02: and build their own wealth.
• 44:26
  SPEAKER_02: Of course,
• 44:26
  SPEAKER_02: technology is reducing those barriers to make participation
• 44:30
  SPEAKER_02: and making investment information more accessible.
• 44:32
  SPEAKER_02: And investors are increasingly the one simple way to access opportunities,
• 44:36
  SPEAKER_02: transparent ways of the same, and also mobile fast experiences.
• 44:40
  SPEAKER_02: Key focus for us is converting first-time investors into long-term wealth creators
• 44:45
  SPEAKER_02: through a lot of education.
• 44:47
  SPEAKER_02: And I'll go back to that, convenience and continuous engagement.
• 44:52
  SPEAKER_02: And when you talk about education,
• 44:54
  SPEAKER_02: he'd call that the journey to Provide as much information to all investors.
• 44:59
  SPEAKER_02: It should not stop with technological advancements.
• 45:01
  SPEAKER_02: The information symmetry should be something that we should be worried about
• 45:06
  SPEAKER_02: and it should ensure that for investors to make their judgment
• 45:09
  SPEAKER_02: and use information publicly available to make
• 45:12
  SPEAKER_02: that judgment should be readily available and accessible by all.
• 45:16
  SPEAKER_02: So the first thing in our view from where we see it is to ensure
• 45:19
  SPEAKER_02: that investors should first of all start by understanding
• 45:22
  SPEAKER_02: the company's business models.
• 45:23
  SPEAKER_02: They should look at growth prospects, financial performance and the risks.
• 45:27
  SPEAKER_02: Someone has alluded to that in terms of providing all that information and
• 45:31
  SPEAKER_02: that is readily available in the IMs.
• 45:33
  SPEAKER_02: They should also probably have whether the investment alliance
• 45:36
  SPEAKER_02: with their personal financial goals, investment horizon and their risk appetite.
• 45:40
  SPEAKER_02: And I think Francis is here to take investors through that kind of a journey
• 45:44
  SPEAKER_02: for them to appreciate where they stand in terms of their risk appetite.
• 45:48
  SPEAKER_02: And of course,
• 45:48
  SPEAKER_02: the opportunities available to them based on that and importantly,
• 45:52
  SPEAKER_02: Investing should be viewed as a long-term wealth building journey rather than
• 45:55
  SPEAKER_02: a short-term speculative activity.
• 45:57
  SPEAKER_02: The stock market has a wave.
• 45:59
  SPEAKER_02: As you understand how that wave moves,
• 46:00
  SPEAKER_02: so you're able to make more informed decisions around the timeline,
• 46:04
  SPEAKER_02: the time horizon of your investment,
• 46:06
  SPEAKER_02: and of course focusing on the various opportunities that have been in terms
• 46:09
  SPEAKER_02: of returns from capital gains, not for dividends.
• 46:13
  SPEAKER_00: Thank you, David.
• 46:14
  SPEAKER_00: A quick one before I proceed to Francis on trends.
• 46:18
  SPEAKER_00: Are there any new exciting features or investment products that we should anticipate
• 46:24
  SPEAKER_00: from ZD traders?
• 46:26
  SPEAKER_02: Tom, of course, the first basis was to give access to the stock market to all investors.
• 46:32
  SPEAKER_02: We have a very robust roadmap in terms of opening up more asset classes to
• 46:37
  SPEAKER_02: the various customers,
• 46:38
  SPEAKER_02: including I know there's a conversation going on how we can provide an ETF.
• 46:44
  SPEAKER_02: We are also opening this up to businesses to ensure that your money can work for you
• 46:47
  SPEAKER_02: while you're sleeping.
• 47:12
  SPEAKER_02: There's no need of leaving your money on your investor wallet
• 47:14
  SPEAKER_02: where you can just move it into your ZD wallet to allow your funds
• 47:18
  SPEAKER_02: to also get some interest and also, of course, to grow those balances.
• 47:23
  SPEAKER_02: That applies to our customers who are either on our purchase platform or also
• 47:27
  SPEAKER_02: in our merchant platforms that is Lippon investor platforms.
• 47:30
  SPEAKER_02: Also, we are looking at in the horizon how we can also bring in other asset classes,
• 47:34
  SPEAKER_02: including bonds, working closely with other stakeholders in the market.
• 47:39
  SPEAKER_02: The fact The opportunity was to,
• 47:41
  SPEAKER_02: first of all,
• 47:41
  SPEAKER_02: give access to NSE and the listed securities,
• 47:44
  SPEAKER_02: but also then the opportunity to grow into other asset classes
• 47:47
  SPEAKER_02: with different categories is something that we're also looking at providing
• 47:52
  SPEAKER_02: for our customers and investors.
• 47:53
  SPEAKER_02: Thank you.
• 47:54
  SPEAKER_00: Frances,
• 47:55
  SPEAKER_00: any trends that you see that are emerging in retail investor activity
• 48:00
  SPEAKER_00: beyond what David has mentioned?
• 48:02
  SPEAKER_03: I'll mention one key item.
• 48:04
  SPEAKER_03: David has covered the other key items.
• 48:06
  SPEAKER_03: So there's been one fundamental learning that we've seen
• 48:09
  SPEAKER_03: because now we're nearing only 200 trading days on ZDIN.
• 48:12
  SPEAKER_03: And also it touches back to your question about investor education.
• 48:16
  SPEAKER_03: So out of those close to 180 trading days since we launched ZDIN,
• 48:22
  SPEAKER_03: It's only two days where we've seen more sellers than buyers on ZD.
• 48:27
  SPEAKER_03: So to me,
• 48:27
  SPEAKER_03: that is very fundamental because it tells me that
• 48:31
  SPEAKER_03: the ZD Trader users are actually investing
• 48:34
  SPEAKER_03: and they have certain information they're relying on and certain knowledge
• 48:37
  SPEAKER_03: that they're using.
• 48:39
  SPEAKER_03: Not to buy and sell on a regular basis.
• 48:41
  SPEAKER_03: So from the discussion we've been having is that the starting point
• 48:45
  SPEAKER_03: for ZD Trader was to sell for Arknis.
• 48:48
  SPEAKER_03: And that has been significantly sold for.
• 48:51
  SPEAKER_03: And we've seen the users use the platform the right way they should be using it.
• 48:56
  SPEAKER_03: And they're buying and holding.
• 48:58
  SPEAKER_03: So having only two days out of 180 days where people have sold more
• 49:03
  SPEAKER_03: than they've bought,
• 49:04
  SPEAKER_03: it's very clear that the investors are approaching it in the right way.
• 49:09
  SPEAKER_03: So there's not speculation.
• 49:10
  SPEAKER_03: It's not a day treaty.
• 49:11
  SPEAKER_03: It's actually majority of Kenyans over the 150 that have executed trades on the platform.
• 49:17
  SPEAKER_03: Who are buying security keys and actually sitting on those security keys
• 49:21
  SPEAKER_03: and benefiting from price appreciation and also benefiting from dividend payouts.
• 49:26
  SPEAKER_03: So again,
• 49:27
  SPEAKER_03: the journey is in the right direction and the persons who are using
• 49:30
  SPEAKER_03: the platform are using it in the proper way.
• 49:33
  SPEAKER_03: So as we move along,
• 49:34
  SPEAKER_03: in addition to the enhancements that David has highlighted,
• 49:37
  SPEAKER_03: in just the same way we're on this call,
• 49:40
  SPEAKER_03: they'll do a lot of effort going into providing access to more and more.
• 49:44
  SPEAKER_03: So that the way users are using it today,
• 49:46
  SPEAKER_03: they're actually even more empowered to use it
• 49:49
  SPEAKER_03: as their principal wealth building platform because it has that capability.
• 49:54
  SPEAKER_03: In terms of a general user trend, again,
• 49:56
  SPEAKER_03: the key one I mentioned is there are more buyers and sellers on ZD on a daily basis,
• 50:01
  SPEAKER_03: which is definitely the right trajectory.
• 50:03
  SPEAKER_03: Of course, it's opened more retail users into the market.
• 50:06
  SPEAKER_03: So on a daily basis, ZD traders are counting for more than $50.
• 50:10
  SPEAKER_03: Transaction size has also improved since February to where we are today.
• 50:29
  SPEAKER_03: So, it's all looking in the right direction.
• 50:32
  SPEAKER_03: In terms of diversification,
• 50:33
  SPEAKER_03: at least if we look at the account, yes,
• 50:36
  SPEAKER_03: we're seeing investors are not just concentrated and holding one or two securities.
• 50:41
  SPEAKER_03: They're familiar names.
• 50:42
  SPEAKER_03: Investors are actually holding multiple securities,
• 50:45
  SPEAKER_03: which is also very endearing and a reflective goal.
• 50:49
  SPEAKER_03: The users do have a certain fairly good level of understanding
• 50:54
  SPEAKER_03: of what investing entails and the principle of diversification.
• 50:58
  SPEAKER_03: So again,
• 50:58
  SPEAKER_03: I believe it's any day or remain ambitious to get a lot of users on the platform and
• 51:03
  SPEAKER_03: to continuously enhance the abilities of the platform to deliver
• 51:06
  SPEAKER_03: the right investment solutions to users.
• 51:08
  SPEAKER_02: Maybe just to add on to that,
• 51:11
  SPEAKER_02: I think one opportunity that you've seen is that initially The requirements
• 51:15
  SPEAKER_02: to purchase shares,
• 51:17
  SPEAKER_02: earned shares as a round lot,
• 51:18
  SPEAKER_02: which was a huge barrier to entry for many who are experiencing stock market for
• 51:24
  SPEAKER_02: the first time.
• 51:25
  SPEAKER_02: That barrier had been lifted.
• 51:27
  SPEAKER_02: You can buy as low as one share.
• 51:29
  SPEAKER_02: I think NFC has opened it up and allowing any Kenyan to be a shareholder
• 51:33
  SPEAKER_02: by just holding the share,
• 51:34
  SPEAKER_02: which is a step in the right direction because one of the biggest questions
• 51:37
  SPEAKER_02: that we've been I think with ZD Trader,
• 51:39
  SPEAKER_02: we are allowing you to get in with as much as you have on your M-Pesa balance,
• 51:44
  SPEAKER_02: which can actually buy even a share on the exchange.
• 51:45
  SPEAKER_02: And that then commences your journey to wealth creation by building your portfolio
• 51:48
  SPEAKER_02: in your own way and of course, accessing these opportunities.
• 52:08
  SPEAKER_02: Thank you, David.
• 52:12
  SPEAKER_00: So very quickly, Simon,
• 52:14
  SPEAKER_00: what is your quick investment pitch to our listeners
• 52:17
  SPEAKER_00: and why should investors consider buying quick much shares?
• 52:21
  SPEAKER_01: So one is in terms of that the company has grown.
• 52:25
  SPEAKER_01: If you look at where we are today, the business has scaled quite a bit.
• 52:31
  SPEAKER_01: And we have done that using our internally generated funds as we do not have debt.
• 52:36
  SPEAKER_01: If you look at the last five years, What we call the growth is in the region of 7.1%.
• 52:42
  SPEAKER_01: The compounded growth in the last three years is 7.4%.
• 52:47
  SPEAKER_01: We've been paying.
• 52:49
  SPEAKER_01: And that means that even if QuickWard was not to open any new store,
• 52:54
  SPEAKER_01: We still have a growth from our existing store portfolio that is faster
• 52:59
  SPEAKER_01: than inflation.
• 53:01
  SPEAKER_01: So we have developed a model that will continue growing the shareholders well,
• 53:06
  SPEAKER_01: whether we do any additional investments or not.
• 53:09
  SPEAKER_01: Number two is that if you look at where we come from,
• 53:12
  SPEAKER_01: our sales have grown 18.4%, whereas our costs have grown at 15.3%.
• 53:17
  SPEAKER_01: And that's why you'll see our profitability has grown more than four times.
• 53:21
  SPEAKER_01: We have come up with a discipline way in which we grow, that our new stores are profitable.
• 53:27
  SPEAKER_01: So we have a discipline as management,
• 53:30
  SPEAKER_01: including the support that we get,
• 53:33
  SPEAKER_01: the international support that we get from the board and
• 53:36
  SPEAKER_01: The corporate governance practices that we have put in place,
• 53:40
  SPEAKER_01: we will just enhance them even going forward.
• 53:44
  SPEAKER_01: So we promise to take care of the capital of our shareholders and ensure
• 53:49
  SPEAKER_01: that we continue growing that in terms of the capital gain that we generate as
• 53:56
  SPEAKER_01: a business.
• 53:57
  SPEAKER_01: There is a lot of room for growth that we do have in Kenya.
• 54:02
  SPEAKER_01: We are only in 16 counties.
• 54:03
  SPEAKER_01: We need to grow.
• 54:05
  SPEAKER_01: There are number of very attractive markets that we have not growing into.
• 54:09
  SPEAKER_01: And then, of course, dividend.
• 54:10
  SPEAKER_01: We have had a very good run in terms of balancing between financing our growth
• 54:16
  SPEAKER_01: and also paying dividends.
• 54:17
  SPEAKER_01: We've reflected on a payout ratio of 80%.
• 54:21
  SPEAKER_01: And in the past, we've even paid higher.
• 54:24
  SPEAKER_01: And we are very keen to ensure that we generate real value.
• 54:27
  SPEAKER_01: For our shareholders,
• 54:28
  SPEAKER_01: both in terms of the growth in the business,
• 54:31
  SPEAKER_01: which we believe the market will reward us for that in terms of the capital gains
• 54:36
  SPEAKER_01: that our shareholders get, but at the same time in terms of dividends.
• 54:40
  SPEAKER_01: And we are very curious in terms of how we run retail using international best practices.
• 54:47
  SPEAKER_01: We know where the industry has come from, but we have to relate to the story of retail.
• 54:52
  SPEAKER_01: It's a very good industry in terms of job creation.
• 54:55
  SPEAKER_01: We have more than 8,000 young people who work for us.
• 54:59
  SPEAKER_01: In terms of our supplier,
• 55:01
  SPEAKER_01: We have created more than 130,000 jobs in the zone that we are doing,
• 55:05
  SPEAKER_01: for example, in terms of solar.
• 55:07
  SPEAKER_01: But most importantly,
• 55:08
  SPEAKER_01: it's corporate governance
• 55:10
  SPEAKER_01: that will continue implementing corporate governance practice that have
• 55:15
  SPEAKER_01: for sure proven in the last few years that it's the way to go in terms
• 55:19
  SPEAKER_01: of managing retail.
• 55:20
  SPEAKER_01: A very lucrative business,
• 55:22
  SPEAKER_01: particularly in a market like ours,
• 55:25
  SPEAKER_01: growing faster than what we call the general trade.
• 55:28
  SPEAKER_01: And there are quite a number of opportunities that are there.
• 55:31
  SPEAKER_01: And we know that the future is quite bright and we are committed to ensuring
• 55:37
  SPEAKER_01: that QuickMart continues to grow to posterity.
• 55:40
  SPEAKER_00: We have a question here for David.
• 55:42
  SPEAKER_00: Our listener is asking,
• 55:44
  SPEAKER_00: David mentioned that Safaricom is liasing with other stakeholders
• 55:48
  SPEAKER_00: to facilitate trading in the bond market in addition to equities.
• 55:52
  SPEAKER_00: Could he please elaborate further on this initiative?
• 55:55
  SPEAKER_00: David, please.
• 55:57
  SPEAKER_02: As part of our long-term journey of growing the Assets are available for investors.
• 56:04
  SPEAKER_02: Of course,
• 56:04
  SPEAKER_02: we have managed to do very well on the money market front where you've provided ZD
• 56:09
  SPEAKER_02: as a product.
• 56:10
  SPEAKER_02: Then, of course,
• 56:10
  SPEAKER_02: we've opened up equities where we're able to allow our investors to access the NFC.
• 56:17
  SPEAKER_02: And, of course,
• 56:17
  SPEAKER_02: one of the questions that the investors have been saying,
• 56:19
  SPEAKER_02: are you able to also provide us an opportunity to access the bond market
• 56:23
  SPEAKER_02: through either Similar to a money market fund or a bond fund.
• 56:27
  SPEAKER_02: So again,
• 56:28
  SPEAKER_02: these are curated products that,
• 56:29
  SPEAKER_02: of course,
• 56:30
  SPEAKER_02: because FICOM does a lot, of course, have a license to offer these securities.
• 56:35
  SPEAKER_02: But of course,
• 56:35
  SPEAKER_02: in conjunction with our partners,
• 56:37
  SPEAKER_02: license intermediaries by the CME,
• 56:40
  SPEAKER_02: then we're able to build and curate these opportunities for the investors to expand
• 56:45
  SPEAKER_02: the pool of opportunities available for our investors.
• 56:48
  SPEAKER_02: We are now at the close of this conversation.
• 56:50
  SPEAKER_02: Starting with you, Simon,
• 56:51
  SPEAKER_02: please recap for me two key things that people should remember about ZD Trader
• 56:55
  SPEAKER_02: and Quikmat.
• 57:12
  SPEAKER_01: Yes,
• 57:12
  SPEAKER_01: Ziggy Trader allows a very easy way in which particularly investors can participate
• 57:19
  SPEAKER_01: in the IPO in a way that you can just apply and pay for the shares that you do wish.
• 57:25
  SPEAKER_01: And it has opened up.
• 57:28
  SPEAKER_01: Little segment of the market in terms of using the accessibility of shares
• 57:34
  SPEAKER_01: that now we don't have any excuse not to participate in some
• 57:38
  SPEAKER_01: of these great milestones that come in our market.
• 57:41
  SPEAKER_01: We have one that is ahead of us in terms of equipment.
• 57:44
  SPEAKER_01: And I would encourage all of us,
• 57:47
  SPEAKER_01: let's take part and start also participating,
• 57:50
  SPEAKER_01: not just with QuickMatt as a shopper,
• 57:52
  SPEAKER_01: but also as a shareholder,
• 57:54
  SPEAKER_01: such that the value that we generate, we also share with the market.
• 57:59
  SPEAKER_01: Particularly, we are so keen to see the participation of our leading customers.
• 58:03
  SPEAKER_01: As I was saying, we have 2.5 million customers.
• 58:07
  SPEAKER_01: I can only imagine all of them are shareholders.
• 58:11
  SPEAKER_01: It will be such a great milestone that we build real partnerships that last so
• 58:16
  SPEAKER_01: that we also get direct benefit as we declare dividends.
• 58:21
  SPEAKER_01: We also get royal shoppers who have helped us who will be very supportive for us
• 58:26
  SPEAKER_01: to get this far.
• 58:27
  SPEAKER_01: Have you take part in terms of the benefits that we do share from the profits that we generate?
• 58:34
  SPEAKER_00: That has been Mr. Simon Masharia from QuickMart.
• 58:39
  SPEAKER_00: Very quickly,
• 58:40
  SPEAKER_00: Francis Mwangi,
• 58:41
  SPEAKER_00: please just look up for us two key things that investors should remember
• 58:45
  SPEAKER_00: about ZD Trader and QuickMart.
• 58:48
  SPEAKER_03: And so one is that ZD Trader platform is a regulated platform
• 58:53
  SPEAKER_03: with two strong partners who have come together to make it easy for clients
• 58:57
  SPEAKER_03: to access investments.
• 58:58
  SPEAKER_03: And of course,
• 58:59
  SPEAKER_03: QuickMart IPO is on the platform is to encourage everyone to look For as low
• 59:04
  SPEAKER_03: as five shillings, you can embark on your investment journey.
• 59:07
  SPEAKER_03: And it would be a shame if someone is not able to tap into that opportunity.
• 59:28
  SPEAKER_00: Thank you very much.
• 59:29
  SPEAKER_00: That had been Mr. Francis Mwangi from Testral Capital.
• 59:33
  SPEAKER_00: Over to you, David Carney, please.
• 59:36
  SPEAKER_00: Just recap for us two key things that every investor should remember.
• 59:39
  SPEAKER_02: So maybe I could say maybe for many years,
• 59:42
  SPEAKER_02: of course, investing felt like something for very few people.
• 59:46
  SPEAKER_02: The trader is changing that narrative.
• 59:49
  SPEAKER_02: Our goal at Firecom is simple.
• 59:51
  SPEAKER_02: Just make investing as easy and accessible as sending money to your mobile phone.
• 59:56
  SPEAKER_02: When more Kenyans participate in capital markets,
• 59:59
  SPEAKER_02: we will not only create personal wealth,
• 1:00:01
  SPEAKER_02: but we will also strengthen our economy and expand opportunities for generations.
• 1:00:06
  SPEAKER_02: I think the other thing is I would invite all investors to look out for what we have
• 1:00:12
  SPEAKER_02: on Safaricom OneUp and the financial services.
• 1:00:16
  SPEAKER_02: We have ZD Invest and Save, we have ZD Trader, among other products there.
• 1:00:21
  SPEAKER_02: And most importantly,
• 1:00:22
  SPEAKER_02: there is a feature on ZD Invest and Save where We ask you to pay yourself first
• 1:00:27
  SPEAKER_02: if you transact and it allows you to set a percentage of saving as you spend.
• 1:00:33
  SPEAKER_02: So as you send money,
• 1:00:34
  SPEAKER_02: as you pay a bill,
• 1:00:35
  SPEAKER_02: as you buy goods,
• 1:00:36
  SPEAKER_02: you first of all send some percentage of whatever you're transacting
• 1:00:40
  SPEAKER_02: to your ZD wallet directly.
• 1:00:42
  SPEAKER_02: And it helps you to build that wallet into your investment wallet as you transact.
• 1:00:47
  SPEAKER_02: So pay yourself before you make that transaction.
• 1:00:51
  SPEAKER_02: Thank you.
• 1:00:52
  SPEAKER_00: That has been an exciting conversation on investing with ZD Trader opportunities in
• 1:00:58
  SPEAKER_00: the Kwikmat and Dangote IPOs.
• 1:01:01
  SPEAKER_00: So investing is now easier than ever and Kenyans can now buy
• 1:01:05
  SPEAKER_00: and sell shares directly through Thank you very much for making time for joining us.
• 1:01:10
  SPEAKER_00: Have a lovely night.
• 1:01:11
  SPEAKER_00: And that was Investing with ZD Trader.
• 1:01:13
  SPEAKER_00: My name is Nikon Juguna.