Cipla Quality Chemical Industries to list 31.1% stake in IPO — report

CIPLA Quality Chemicals Offices
Cipla Quality Chemical Industries Limited, the drug maker, will list 31.1% of its stock on the Uganda Securities Exchange in its initial public offering, which is still awaiting the regulator’s approval.

In November last year the company announced that it was exploring the possibility of listing on the stock exchange and had appointed a book runner, Kenya’s Renaissance Capital, to manage the process.

A report in the East African newspaper says CiplaQCIL’s largest stakeholder, Cipla Limited of India, will reduce its shareholding to 51% from the current 62.3% in the IPO.

Capital Works Investment Management, an institutional investor in the pharma company with a 14.4% shareholding, will sell off its stake in the IPO, according to the report.

Ugandan shareholders, on the other hand, will see their shareholding halved to 1.8%. These include Frederick Mutebi Kitaka, George W Baguma – both executive directors at the company – and Emmanuel Katongole, the executive chairman.

The three were among the six founding investors of Quality Chemicals Limited when it started operations in 1997. In 2005 Cipla Limited bought into the company.

Another investor, the private equity firm TLG Capital which has a 12.5% stake will retain its shareholding.

The Capital Markets Authority completed its initial review of the company’s application to list, according to sources. However, the drug maker was asked to provide more information.

CiplaQCIL manufactures nine branded generic drugs, six of which are antiretroviral (ARV) drugs, one artemisinin-based combination therapy (ACT) drug, and two hepatitis B drugs.

Read More: Drug firm CiplaQCIL plans to sell 31pc stake in IPO on Uganda bourse