India’s pharmaceutical giant Cipla has been one of the most popular companies in its sector. The Ugandan unit of the pharmaceutical giant has reportedly raised $43.8 million (167 billion Ugandan shillings) from its oversubscribed initial public offering (IPO).
Talking further about the IPO, Cipla Quality Chemical Industries Ltd (CQCIL) which is majority owned and operated by India’s third-largest drugmaker sold 657 million shares equivalent to 18 percent of the firm’s total equity. Every share in the IPO was priced at 256.5 shillings.
“The offering has been oversubscribed with the major part of the demand coming from blue-chip Sub-Saharan Africa investors,” John Porter, chief business officer at investment bank Renaissance Capital stated.
Cipla is an Indian multinational pharmaceutical and biotechnology company, headquartered in Mumbai. The company is basically concerned with the development of medicines to treat respiratory, cardiovascular disease, arthritis, diabetes, weight control and depression; other medical conditions. Cipla sells active pharmaceutical ingredients to other manufacturers as well as pharmaceutical and personal care products.
These days IPO has become one of the largest sources of investment for the companies. Along with fundraising, IPO also has been playing a major role in the raising of funds. The CEO of the company did not mention how much the IPO was oversubscribed.
Established in 2005, Cipla Quality Chemical Industries Ltd has a factory in Uganda’s capital Kampala and makes a variety of drugs including antiretrovirals, anti-malaria and drugs to treat Hepatitis B and C. Most of the drugs of the company are sold in Sub-Saharan Africa.
The IPO is the first on Ugandan market, a small exchange of about 17 equities, since 2012 when the country’s sole power distributor Umeme Ltd went public.