ARV Maker To List On USE In Latest IPO

ARV Maker To List On USE In Latest IPO

Cipla Quality Chemical Industries Limited (CiplaQCIL), a state-of-the-art pharmaceutical company manufacturing the latest Anti-malarial (ACTs), Anti-retroviral (ARVs) and Hepatitis medicines, has indicated it will list on the Uganda Securities Exchange next month.

The firm’s prospectus reveals that the firm plans to sell an 18% stake in the company. The company’s board and shareholders agreed to tender 657,179,319 of the company’s 3,651,909,200 shares.

With the firm’s authorised share capital currently at Shs45,648,865,000, it means that the issued shares are valued at Shs3,651,909,200 or Shs12.5 per share.

Emmanuel Katongole, the company’s executive chairman, said the offer “is a sale of shares by the selling shareholders” and is not aimed at raising capital. “The Company is well capitalised, is cash generative and has sufficient resources to self-fund its growth and, as such, does not anticipate the need to raise any primary capital at this time,” Katongole said in a statement published in the prospectus.

The offer shares will comprise shares offered by Cipla EU, a United Kingdom subsidiary of Cipla Ltd, Capitalworks, a South African private equity firm, the three Ugandan founders, and Amistad, a Mauritius-registered company.

Cipla EU is to sell all its shares, currently 11.25% of the company’s issued shares, while Capitalworks will see its stake reduce to 11.11% from the current 14.4%. Amistad’s stake will reduce by 1% to 11.50% after the offer.

The three Ugandan founders – Emmanuel Katongole, George Baguma, and Frederick Mutebi Kitaka – will each own 2.78% after the offer, from the current 3.60% each.

Only Mediatab, a Mauritius-registered company wholly owned by Cipla Ltd, will retain the same stake, 51.05%, it currently owns after the initial public offering.

CiplaQCIL is based in Kampala, Uganda and it is a WHO approved facility; among one of the few in Sub-Saharan Africa. The products are currently exported to 9 African countries with plans to scale to 19 countries.

In addition to being a WHO approved facility, CiplaQCIL’s medicines have been approved by regulatory bodies across Africa including: Kenya, Rwanda, Tanzania, Namibia, Ivory Coast, Ethiopia and several others. Over 98% of CiplaQCIL’s employees are trained and skilled Ugandans in Pharmacy, Tableting and other technical fields.

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