Ugandan unit of India’s Cipla Pharmaceutical firm raises $41 million in IPO

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The Ugandan unit of Cipla, an Indian pharmaceutical and biotechnology company, raised 155 billion Ugandan Shillings ($41 million) from its initial public offering (IPO).

Cipla Quality Chemical Industries Ltd, mainly owned by India’s third largest drug maker, sold 657 million shares, which is equivalent to 18 percent of the firm’s total equity. Each share was priced at 256.5 Shillings and closed the first day of trading by 2.1 percent at 262 Ugandan Shillings.

In an interview with Reuters, the chief business officer at brokerage Renaissance Capital, John Porter admitted interest came from international and local investors. Porter also said “the offering has been oversubscribed with the major part of the demand coming from blue chip Sub-Saharan Africa investors”.

Cipla Quality Chemical Industries Ltd, which was established in 2005, has a factory in Uganda’s capital Kampala. The company makes a range of drugs including antiretrovirals, anti-malaria and drugs to treat Hepatitis B and C. Most of the drugsCipl produced are sold in Sub-Saharan Africa.

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