preloader

CMA Approves CIPLAQCL Prospectus

Kampala… Pharmaceutical Company, CIPLA Quality Chemicals Limited (CIPLAQCL) will now be able to issue shares to the general public, following approval of its prospectus by the regulator, Capital Markets Authority (CMA). CMA granted approval to CIPLAQCL to offer 657,179,319 shares(equivalent to 18% of the total issued shares of the company), at an offer price of UGX 256.5 per share. The shares are expected to be listed on the Uganda Securities Exchange (USE) to enable secondary trading activity, once the offer window closes.

CIPLAQCL becomes the ninth domestic company to list its shares on the USE, following an Initial Public Offering (IPO). The exchange last had an IPO in 2012 when Umeme Limited came to the market to raise up to UGX 67 Billion through a sale of 622,378,000 shares, an offer which was oversubscribed by 36.9%.

“We congratulate CIPLAQCL upon taking this step up the financing escalator, which now increases the companies financing options.This is a clear sign of the confidence our private sector has in the economy,and in Uganda’s capital”, said Keith Kalyegira, CEO of the CMA.

“The benefits of coming to the market are immense – from capital raising though corporate debt issuance and secondary public offers, to offering an exit avenue to founder shareholders, and the immeasurable public relations value that comes with being a quoted company. We are glad today that CIPLAQCL is taking advantage of these opportunities and we urge all other Ugandan enterprises and family owned businesses with ambitious growth plans, to consider market based financing to finance their growth or refinance the expensive debt they may have obtained.”

Mr. Kalyegira cautioned prospective institutional and individual investors, to endeavor to understand the salient features of the offer as spelt out in the prospectus, by seeking professional advice from any of the licensed investment advisors or participating brokers, before investing. 

Ends…

Leave a Reply

Your email address will not be published. Required fields are marked *

Protecting Your Investments

ABOUT US

QUICK LINKS

NEWS LETTER SIGNUP

Sign up for our latest news & articles. We won’t give you spam mails.

Copyright © 2021 Capital Markets Authority. All Rights Reserved