Jatoil IPO oversubscribed
December 9, 2007 - 4:07PM
A new Australian biofuel company, Jatoil Ltd, has closed its $10 million
initial public offering oversubscribed.
The budding biofuel company was offering up to 35 million shares at
$0.20 each to raise up to $7 million and had begun accepting
Its prospectus allows for oversubscriptions up to a maximum total
raising of $10 million.
The final value of the raising will be determined this week, the company
said in a statement on Sunday.
Jatoil plans to supply rising international demand for biofuels by
growing and selling low-cost biodiesel feedstock overseas.
Its main commodity will be Jatropha oil - derived from a low-cost,
high-yielding, fast-growing, plant of the same name.
The plant is also non-edible, unlike other biofuel sources such as soya
bean, so it does not compete with human food, the company said.
Executive chairman Mike Taverner, who at the UN climate change
conference in Bali, used the announcement to urge the new federal Labor
government not let the Australia biofuel industry to fall behind.
"The Rudd government needs to work with the biofuels industry to make
more Australians aware of the benefits of biofuels and to drive demand,"
"The government also needs a plan to move the Australian industry away
from a reliance on human food crops as biodiesel feedstock.
"The use of these inputs is too expensive and unsustainable.
"Biofuels from sustainable feedstocks are an important tool to combat
global warming and the skyrocketing cost and diminishing supply of crude
Jatoil plans to list on the ASX in the week commencing December 17.
© 2007 AAP
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