India’s pharmaceutical giant Cipla’s Ugandan unit is reportedly aiming to raise $45 million from initial public offering (IPO). The company priced its IPO at 256.5 shillings per share.
This amount is expected to be raised from its listing on the Kampala stock exchange next month. Cipla Quality Chemical Industries is majority owned by India’s third-largest drugmaker and is selling 657,179,319 shares or an 18 per cent stake in the company.
In this regard, the company has stated that each of its shareholders would be “selling a minority of their stakes” in the IPO and also the transaction and potential listing had gained regulatory approvals.
The company expressed as part of its growth strategy, it “has been evaluating an initial public offering and listing of its issued share capital on Uganda Securities Exchange.”
Founded in 2005, the company has a manufacturing plant in the Ugandan capital Kampala. It produces a range of drugs including antiretrovirals, anti-malaria and Hepatitis B and C drugs, which it sells mostly in sub-Saharan African countries. With this IPO, Cipla will become the 17th company to list on the Ugandan stock exchange.
Emmanuel Katongole, Chief Executive Officer of the company said that the IPO would allow Ugandan investors to share in the company’s success.
According to a statement, Cipla will maintain a majority stake even after the IPO, however, the firm did not mention the amount of equity that would be offered for sale in the IPO. The company made a net profit of 44.6 billion shillings for the year ended in March this year.