THE domestic market sustained the bullish rally that began a few weeks ago as the domestic market capitalization slightly rose by 0.28 per cent during the week that ended on the 04th of June 2021.
The Tanzania Share Index (TSI) went up 10.19 points to close the week at 3,625.41 points following the rally on the domestic market cap which closed the week at TZS 9,545.57bln ($4.13bln). The rally of the domestic cap was influenced by three counters which were the only ones that recorded price movements during the week.
CRDB went up by 3.51 per cent as the counter came to the end of its dividend run, with the ex-dividend period beginning on Monday, 07th of June 2021. CRDB closed the week at 295/-. Other gainers were JATU which gained 3.45 per cent and Tanga Cement (TCCL) which rose by 2.53 per cent.
JATU was only active on Monday, before getting suspended from trading on Tuesday, 01st of June, 2021, to give space to the ongoing Initial Public Offering (IPO) of the company. JATU is looking to raise TZS 7.5bln ($3.25mln) by offloading 15mln shares to the public at the price of TZS 500/- per share.
JATU also split its existing shares on a ratio of 2:1, that is, every shareholder that had JATU shares now has twice the initial amount. If the counter was still trading, it should have been trading at 600/- following the split, thus effectively the IPO price included a 16.7 per cent discount from the market price.
Upon an expected successful IPO, JATU plans to use the fund to refurbish its Kiteto farming project in Manyara which has 5,000 acres of maize and sunflower. The company plans to purchase about 17 tractors and other farming equipment, put in place an irrigation scheme that shall produce three harvests annually, and construct a flour milling factory that shall process up to 50 tons of flour per day.
The IPO was opened on the 01st of June, 2021, and is expected to close on the 15th of July, 2021 while the allotment to be done on the 19th of July the same year. In case of an oversubscription, the company has a greenshoe option of up to 50 per cent of the offered amount, which gives the company room to raise to TZS 10.5bln ($4.5mln).
The expected listing date is 29th July 2021 and the suspension from trading is to be lifted during […]