TANZANIA – Tanzanian agri-business company, JATU Plc is set to float shares to the public through Dar es Salaam Stock Exchange (DSE), with the focus of raising a total of Tzs 7.5bn (US$3.2m).
The shares will be issued through Initial Public Offering (IPO) where a total of 3 million shares will be floated at a price of Tzs 2,500 (US$1.08) per share, reports Daily News.
The company’s general manager, Mr Issa Simbano said the funds raised will be used for expanding the existing business by boosting industrial activities, irrigation schemes, farming machineries and administration issues.
He revealed that JATU Plc has already submitted its application to the Capital Markets and Securities Authority (CMSA) and had cleared all important payments to allow the company to be listed on Dar es Salaam Stock Exchange (DSE).
Mr Simbano said his company in collaboration with Kiteto District Council and its members have embarked on an agriculture project in 500 acres which have already been researched for agriculture activities.
“We have agreed to sell our shares to the public to secure funds for the implementation of this project…the aim is to raise Tzs 7.5bn (US$3.2m) for the construction of irrigation scheme and set up a maize flour plant,” he said.
Mr Simbano added that since Mtui farm was also expected to serve as a pilot farm for the future projects, the company will also install social infrastructure such as permanent residences and rooms for visitors especially members who visit their farms, build offices and a research centre.
He however noted that, the location of Mtui farm provide farmers with access to transport infrastructure such as Standard Gauge Railway (SGR) which is currently under construction to transport their produce.
JATU Chief Executive Officer (CEO), Mr Peter Isare said that his company which is majority owned by youths and small farmers in the country will be the first agribusiness company to be listed on DSE.
He said the company was determined to be the preferred company that is focused on meeting customers’ demands both nationally and internationally in agribusiness and agriculture related products while providing reasonable return to shareholders.
“Since its establishment in 2016 the company has managed to connect hundreds of smallholder farmers in different areas of the country to modern agricultural technique and support,” Mr Isare said.
He said currently their faming and processing operations have been established in Morogoro, Tanga, Dodoma, and Manyara regions adding that in the future, similar activities were planned for other regions in the country.