Uganda: Drugmaker Lists On Stock Exchange

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Cipla Quality Chemical Industries (CiplaQCIL) is selling 657,179,319 shares to raise an expected Ush168.6 billion. The total shares floated at its Initial Public Offer (IPO) represents 18 percent of the company.

Indian pharmaceutical company Cipla Limited will remain as the majority shareholder with 51 percent stake, having floated 11 percent of the shares it holds in Cipla Quality Chemicals Industries.

Quality Chemicals Limited (QCL) had in 2014 convinced Cipla to enter into a joint venture with the company and the government of Uganda to establish a pharmaceutical plant in Uganda. In 2009, London-based private equity company, TGL Capital invested an undisclosed amount of money in CiplaQCIL, the company formed from the partnership. Another private equity company CapitalWorks Investment Partners also invested in the company.

However, the Ugandan government divested from CiplaQCIL in February 2010, selling its shares to CiplaQCIL in a transaction valued at $5 million.

CiplaQCIL, the first African company to manufacture triple-combination antiretroviral (ARV) drugs, has priced its initial public offering at USh256.5 shillings ($0.0688) per share. The share offer closes on Friday 24 August.


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