New company offers promise of biofuel boom

[ theage.com.au ]

A NEW Australian company hopes to tap global demand for biofuels with a $10 million initial public offering this week.

Jatoil's main commodity will be Jatropha oil — derived from a low-cost, high-yielding, fast-growing, plant of the same name it plans to grow and sell overseas.

It will develop its supplies with partners initially in Asia to supply Asia and Europe.

Jatoil will offer up to 35 million shares at 20¢ each to raise up $7 million and may accept oversubscriptions for up to 15 million shares at 20¢ each to raise a further $3 million. The maximum raising of up to $10 million comes in addition to its cash reserves of $5 million.

"We have already entered an agreement to participate in substantial Jatropha projects in Indonesia and we are initially exploring additional opportunities in Sri Lanka and South-East Asia," executive chairman Mike Taverner said.

The offer opens on Friday and closes at the end of the month. It is due to list on the sharemarket on December 12.

■ Mesbon China Nylon hopes Australian investors will weave themselves into its expansion plans through a $20 million public offering. The Chinese yarn-spinning company will issue up to 40 million fully-paid ordinary shares at 50¢ each to raise up to $20 million.

Executive chairman Zhehao Shen said the timing was right "particularly so if local investors can trade China-focused stock on the local Australian bourse".

Auspine chairman Paul Teisseire has been appointed a Mesbon non-executive director.

The offer opens on November 19 and is due to close on December 7. It is due to list on December 18. AAP