Jatu Plc which will sell 15 million ordinary share when its IPO starts in mid July and ends at the end of the same month this year, has already secured 5,000 acres of land in Kiteto district of Manyara region where it plans to cultivate maize and sunflower.
“So far we have cultivated 500 acres and the money that we will raise through the initial public offer will be invested in further cultivation of the farm,” said Jatu Plc’s CEO, Peter Isare. Isare said in Dar es Salaam last week while launching the IPO that the agribusiness company’s shares will be listed at Dar es Salaam Stock Exchange’s enterprise growth market after the IPO.
He further revealed that part of the IPO money will also be invested in four milling machines with capacity of producing 50 metric tons of maize flour per day which will be supplied to urban markets throughout the country.
Isare urged Tanzanians to cultivate a culture of investing in DSE listed companies in order to leap benefits through dividend saying Jatu is a blue chip agribusiness firm that has a good record of profiting making even before the IPO.
“Our shares are selling at 500/- each and we welcome both local and foreign investors to buy a stake and be part of this promising company,” he bragged while stressing that the next group of African billionaires will come from agribusiness.
The agribusiness company has 30,000 shareholders across the country so far with 70,000 customers of its commodities with 47,000 acres land so far secured in different regions of the country. “Through Jatu, over 5,000 smallholders have benefited directly in terms of loans, farming equipment, training and technical advice,” he said.
In Njombe region, the company has cultivated 500 acres with avocado trees with the first harvest of fruits expected in three years time. “We target international markets with this commodity because the market is readily available,” the Jatu Plc chief executive added. The company also has an orange farm in Handeni district of Tanga region.
“We already have five supermarkets in different parts of the country including Arusha, Dar es Salaam, Dodoma, Mwanza and Mtwara,” he noted while adding that Jatu shareholders are assured of getting dividend from profits made.
Seconding Isare’s arguments, Jatu Plc’s Board Chairman, Dr Zaipuna Yonah said the IPO follows the listing of over 2.16 million ordinary shares worth over 1.08bn/- on DSE’s enterprise growth market (EGM) window in November last year.
“Since then, the value of Jatu Plc’s shares has increased from 420/- each to 1,160/- currently which demonstrates that there is a public appetite to invest in the company,” Dr Yonah said. He revealed that the target is to have farms in all districts of the country and undertake agribusiness activities.