JATU, an agri-based startup firm, is no longer a smallest-listed company in terms of market capitalization after its share gained almost three times in less than a month after listing.
The startup firm, listed on Dar es Salaam Stock Exchange (DSE) alternative market, appreciated over 160 per cent to 1,100/- on Tuesday from 420/- on the listing day.
According to DSE daily market report, the firm market cap climbed up from 1.08bn/- on listing day to 2.38bn/- on Tuesday to overtake TaTePa market cap of 2.24bn/-.
The third is MuCoBa with 3.26bn/- while TBL is the largest in terms of market cap at 3.216tri/-.These three companies are the only ones which have less than 4.0bn/- market cap out of 25 listed stocks.
The Zan Securities Chief Executive Officer Raphael Masumbuko predicted last week that the newly listed Jatu share to continue with its bullish trend this week.
"…We envision Jatu, the new counter to continue climbing [this week]," Mr Masumbuko said in the Weekly Market Wrap-ups report.
Jatu listed 2,164,349 shares on DSE's alternative market at a price of 420/.
Ever since, the firm, which hadn't gone through an IPO, becomes investors’ darling stock after listing as it saw its share rallying to 460/- on the first day of listing.
The Tanzania Securities said on Tuesday in its Weekly Market Blast that Jatu projected to remain active this week despite analysts being baffled by what is behind its demand.
“Even though it remains a mystery to justify Jatu’s demand at the bourse it is likely that it may remain active for some coming trading sessions,” Tanzania Securities said.
On Wednesday, two stock brokerage firms told the ‘Daily News’ they are analyzing Jatu to find out the forces behind such high demand.
The firms said they will issue the analytical report of Jatu in a week to come to shed light to investors and would-be-investors on the demand.
Jatu, initiated by a group of youth in a quest to create their own jobs, has become the first agri-based firm to list on DSE.
The agricultural based start-up company at its nascent stage has already created some 10,600 jobs and is the latest entrant to the bourse after almost two years.
Since the company deals with empowering Tanzanians in the agriculture sector, and improving the value chain in the sector, registering on the DSE would now be able turning small scale farmers into investors by buying shares.
Jatu is involved in mainly four activities being agricultural activities, industrial activities, networking marketing, and packaging and sales.
According to extracts in the Memorandum of Information (MoI), revenue has been doubling since 2017, displaying a very sharp growth still by the company.
