JATU Plc, an agri-based startup firm, share has jumped up by 44 per cent a week after relisting following a primary offer which was oversubscribed sizably.
The firm share rose from 500/- when relisted after a three months of IPO last Tuesday to 720/- at the start of yesterday trading session. The very first day the price jumped to 550/- a share.
Orbit Securities said in its Weekly Market Synopsis yesterday after two months of IPO, Jatu managed to raise 7.7bn/- specifically for the Maize Kiteto Project in Manyara.
“The firm plans to install a modern irrigation system as well as a processing factory in Kiteto and this have the potential to triple output on the project,” Orbit report said:
“We should also remember that prior to the offering; Jatu split its shares at a ratio of 2:1”.
The effective price after the spilt was 600/-. The firm closed the first week after relisting at 720/- per share.
Dar es Salaam Stock Exchange (DSE) three months ago temporarily suspended Jatu from trading for two months to pave the way for IPO.
Also, in the week ending last Friday, DSE’s saw a drop in the equity turnover and the two major indices.
The Tanzania Share Index (TSI) lost 11.24 points while the domestic market capitalization slightly rose by 0.071per cent.
“The differed movement can be accounted for by the listing of new shares of Jatu,” Orbit report said.
Zan Securities said in its Weekly Market Wrap-ups that the high demand for Jatu shares after resuming trading at the DSE helped propel its price per share to appreciate by 44 per cent in one week.
“Shareholders are already realizing capital gains from their shares purchased during the IPO within one week,” Zan said.
Vertex International Securities said in its weekly Market report that the increase in prices for some counters and listing of Jatu were not enough to lift the performance.
“We expect a shift in performance next week as we anticipate a spillover of Jatu’s surge in price,” Vertex said.
The TSI closed the week at 3,623.41 points while the domestic market capitalization stood at 9.58tri/-.
The two domestic counters led to the decline of the TSI while one counter slightly rose.
The declining counters were Twiga Cement and Swissport which dropped by 2.56 per cent to 3,800/- and 1.79 per cent to 1,100/- while CRDB slightly rose by 1.96 per cent to 260/-.
“The price of Swissport dropped despite the company returning back to profitability in the half year results, compared to losses inflicted by the pandemic last year,” the report said.
On the other hand, CRDB is showing some rebound since the price began falling after the ex-dividend dates.
The All Share Index (DSEI) lost 24.55 points to close the week at 3,623.41 points following a decline on the two cross listed giants, on top of the domestic losers.
The EABL dropped by 2.14 per cent and KCB Bank dropped by 3.92 per cent.
The drop of the two giants was enough to offset the rise of Jubilee Holdings (JHL) which rose by 1.33 per cent. As a result, the total market capitalization went down by 1.01 per cent to close the week at 16.49tri/-.