FREQUENTLY ASKED QUESTIONS
An Initial Public Offer refers to the process where a company offers its shares to the public. In an IPO, the company offers shares to investors in exchange for capital. This is one of the means through which the company raises funds. Any company that fulfils the requirements of the CMSA can go public
JATU PLC is involved in participatory Agriculture, Industry, and Marketing activities.
JATU Company runs and managing various agricultural projects in collaboration with its shareholders
This company was established for three main purposes:
- Connecting farmers, smallholder farmers and people interested in farming and supporting them doing modern and collective farming.
- Establishing factories Near agricultural areas or farms and conducting activities in food processing industries.
- To provide marketing services in the sale of various goods and services available in company.
So far JATU PLC in collaboration with its shareholders have successfully owned large farming different regions and run the following projects:
- In Manyara region, at Kiteto district, JATU running Maize farming projects where acres 3454 and Sunflowers 125 acres, already cultivated.
- In Morogoro Region at Kilombero District JATU is focused on rice farming, so far more than 4813 acres have been planted.
- In Tanga Region at Kilindi District, JATU cultivates beans, where more than 12101 acres already cultivated.
- In Njombe Region, JATU cultivates avocado and more than 710 acres already cultivated.
- In Tanga Region at Handeni District, JATU cultivates oranges, where more than an acre 164 already cultivated.
- Dar es Salaam, In Kimbiji area at Kigamboni, vegetable farming is done where 4 acres have already been cultivated.
In addition, JATU's plan is to ensure that it establishes farms in every district in the country (Tanzania) and the farms will be provided with irrigation infrastructure, while being accompanied by Industry
JATU Company has established and continues to set up small scale industries around their agricultural projects, with the aim to facilitate access to raw materials.
Through these industries the company buys the produce of the farmers who are its shareholders and prepares it products that they sell through the JATU APP for the purpose of online marketing (Network Marketing). So, the JATU shareholder who has farmed with the company (JATU PLC) gets a chance to Its products are sold in their factories including the flour factory located in Kibaigwa -Dodoma and in Igima, Mbingu at Kilombero district in Morogoro region which processes rice and value addition, as well as the value-added bean available Kilindi – Tanga.
JATU PLC Products
So far JATU PLC already have the following products; Rice, Dona flour, Sembe flour, Sunflower oil Cooking, Drinking Water, Beans, Peanuts, Flour Nutrition, Vegetables, Onions, and others will continue to come.
Each single share cost Tsh 500 only.
There are a total of 15,000,000 shares in the market that are for sale.
An investor is required to purchase from 10 shares onwards in groups of 10.
A Share split of 2,164,349 ordinary shares at a ratio of 2:1 with a cut-off date set as at 31st May 2021, which is 1 working day before the IPO opening date of 1st June 2021 was authorized by the Board of Directors on 7th of November 2020 to arrive at the current 4,328,698 ordinary shares which are now valued at TZS 500 per share, a price which isin proportion of 2:1 to the current market price
During the IPO period, trading of shares on the secondary market (DSE) will be frozen until the end of trading day on 28th July 2021 which is 1 day before the listing date of new shares 29th July 2021
The company is operational and therefore the main purpose of the offer is to raise money for expanding the existing business. Proceeds will be used for Agricultural Projects, Industries, Irrigation systems, and Administration.
The offer to subscribe for shares is open to all Tanzanians and non-Tanzanians.
The summarized procedures below should be read in conjunction with the detailed instruction for applying for Offer Shares as contained in the Prospectus, as well as the instructions on the Application Form.
Copies of this Prospectus and Application Forms are available to prospective investors during normal working hours on Business Days until 4:00 pm on the Closing Date from all collecting agents.
Minors are permitted to apply for offer shares with the assistance of their parents or a legal guardian who shall be obliged to sign the application form on their behalf.
- Banker’s cheque
Payment for the shares shall be in the form of banker’s cheques for values below TZS 10million. Banker’s cheques must be drawn by a licensed company which is a member of the BOT Clearing House.
Payment for shares shall be made through TISS for values above TZS 10million
- Authorized cheque or cash should be made payable through:
JATU PLC Collection Account No. 20710025732; NMB Bank, Kurasini -Temeke Branch.
- Cash Payment:
Cash payments may also be made through Authorized Collecting Agents or may be deposited by the applicant to the dedicated collection account.
All payments must be made in TZS.
No interest will be payable by the receiving company or the collecting agents on money paid for the Offer Shares
Part A: General Information
An application must be a holder of a CSD Account. To open a new CSD Account or enhance existing CDS Account please refer to part D, E, F and G below. Applicants are required to observe terms and conditions contained in the Prospectus.
Part B: Access to DSE Mobile Trading Platform
Dial USSD *152*00# >>>>> Government Payment >>>>> DSE
Download “DSE Hisa Kiganjani” app from Play Store
Bonyeza kwa https://onlinetrading.dse.co.tz/guest/welcome
Part C: Payment
Payment can be made through the following payment Mobile money channels: M-Pesa; Tigo Pesa; Airtel Money, Halopesa, Ezy Pesa and T-Pesa.
Payment can also be made by dialing USSD Short Codes of CRDB, NMB, Azania, Akiba, Mkombozi etc. and select an option to pay through a GePG control number to be issued by MTP.
Part D: Registration Confirmation
Registration is electronic so the investor will be asked for his/her National Identification
Number (NIN) and he/she will verify the electronic information by responding correctly
to at least two of five random questions. On successful verification of NIN, the investor
will choose between opening a new CSD Accounts or enhancing existing CDS Account
Part E: Activation of a new CDS Account
For new CSD Account, the investor will be given a CSD Account No and a start-up code. Investor will be asked to enter the start-up code to activate the CSD Account. Investor will be asked to enter a new PIN and then will be required to confirm the PIN. The CSD Account will be activated and ready to use
Part F: Enhancement of Existing CSD Account,
To enhance existing CSD Account the investor will enter his/her NIN, a CSD Account No, and a PIN to be given by CSDR if not known or forgotten.
Part G: Opening CSD Account for a child
Parent/Guardian can open a new CSD Account for a child - with a maximum limit of five children.
All refunds shall be by way of electronic funds transfer to the subscribers’ bank account provided in the application form or banker’s cheque or company draft in case the electronic transfer fails. No interest will be paid on any application monies refunded as a result of the oversubscription of the Offer.
No. Applying for shares does not guarantee allotment. Applying for shares means that you are bidding for the shares. The allotment depends on the number of bids received.
- Application Number
- Copy of Payment
- Copy of Application form
In the case where bids do not exceed the offering, the investors will be allotted shares as long as they have provided accurate and appropriate applications. If the IPO is oversubscribed then the shares may be allotted on a pro-rata basis.
An investor can download the online form provided by the dealing members or JATU PLC. These forms are also available through Authorized Collecting Agents as provided in the attached list.
No, an investor can place a sell order during the pre-opening time and sell when the IPO trading starts at 10 am on listing day.
Applicants should consult their own professional tax advisors in regard to the tax implications of subscribing for, holding and disposing of the shares under the offer. The Company, its staff and advisors do not accept any responsibility or liability for any tax consequences to applicants subscribing for, holding and disposing of offer shares as a result of the offer. Holders of shares in companies listed at the DSE are subject to a 5% withholding tax on dividends as opposed to 10% for unlisted companies. There is no stamp duty payable on transactions in shares listed on the DSE compared to transaction outside the DSE which are charged at 6%. Capital gains tax is also zero for DSE transactions compared to 10% outside the Exchange.
Must duly complete and sign the accompanying application form and return the same accompanied by proof of payment in TZS, by way of electronic funds transfer, cash or a banker’s or authorized selling agent’s cheque (as may be applicable) (an “authorized cheque”) so that it is received by the receiving company before the Closing Date. All such application forms must be accompanied by proof of payment by way of electronic funds transfer and/ or mobile money payment, cash or an authorized cheque for the full 4 amount due for the offer shares applied for by that applicant