Ugandan pharmaceutical giant, CiplaQCIL (Quality Chemicals) has announced an initial public opening for sale of about 657.2 million shares as it launched its Initial Public Offering (IPO) on Uganda’s capital market.
The pharmaceutical revealed that it will be selling 18% of the 62% of the shares held by the company at Shs 256.5 each share, with the minimal share of about 1,000 shares.
This offer is open from today, August 14 to 24, 2018 to individual and company investors.
Speaking at the launch, the Executive Chairman of CiplaQCIL, Emanuel Katongole said the company’s willingness to open its shares to all willing Ugandans and foreigners is rooted in the fact that the company is willing to offer viable investment opportunities to Ugandans and allowing them to walk with them on a journey to make Uganda a disease free country.
“Since our humble beginning 13 years ago, we have made tremendous contribution in saving lives by arresting the scourge of dreaded diseases like Malaria, HIV/AIDS and Hepatitis B with in Uganda and around Africa,” Katongole said.
He added that by buying shares and being part of CiplaQCIL, the shareholders will become part of the initiative in addition to earning a reasonable return on investment.
However the company will be maintaining 51.1% of its shares to allowed innovation and technology developments.
Nevin Bradford, the company’s CEO said the company is so far in good financial standing and has plans to become a center of excellence in manufacturing of quality, affordable and newer medicine that improve the quality and quantity of life in Sub Saharan Africa.
Quality Chemicals’ products are pre-qualified by WHO and approved by regulatory Authorities in 19 countries. The company is also the only manufacturer in sub saharan Africa supplying malaria medicine to the global Fund.
Keith Kalyegira, the CEO Uganda Capital markets Authority commended CiplaQCIL for the milestone saying that the company had been reviewed and found fit to list on the capital market.
“The company has completed all the requirements and the fact that Cipla is allowing to sell some of its shares and be open to public scrutiny means that the company’s books of accounts are in order” Kalyegira said
The company has selected Renaissance Capital as the lead Transaction Advisor and Crested Capital as the lead Sponsoring stock Broker although there are other over 10 companies hired to sale the shares.
CiplaQCIL IPO is the first public offering since 2012, the last one having been that of Umeme Ltd. The company is currently debt free having cleared all its commercial debt in July 2015, making it investment worthy.
Speaking during the launch of the IPO at Serena Hotel, Minister for Finance, Matia Kasaija asked youth to be cautious when making investment decisions and to put their money in ventures that are long term.
“Buying and investing in shares on the capital market means that you have a long term investment plan that can even be inherited by your children,” said the Minister who offered to buy shares worth Shs 10 million in the pharmaceutical.
Founded in 2005, Cipla Quality Chemicals manufactures products that target three major diseases that are widespread in Uganda and Sub Saharan Africa. They comprise of antimalarials, antiretrovirals and Hepatitis B and C drugs.
All the pharmaceutical’s drugs are prequalified by World Health Organization (WHO) and approved by regulatory authorities in 19countries across Africa including Kenya, Tanzania, Rwandaz Namibia, Ivory Coast, Zambia, Zimbabwe, Malawi, Mozambique, Ghana, Ethiopia, Angola and South Sudan.