Jatoil Limited has announced its Initial Public Offering (IPO) was oversubscribed following strong investor support. The company expects to list on the Australian Stock Exchange in the week commencing 17 December. The press release has the financial details.
Jatoil’s Executive Chairman Dr Mike Taverner, speaking from the Bali Climate Change Conference in Indonesia said:
Jatoil is delighted with the investor response to our IPO. There is strong interest in the rising international biofuels industry and in Jatoil’s non-food biodiesel business plan.
Jatoil is different to other biofuel companies operating in the Australian domestic market because we will supply rising international demand for biofuels by both growing and selling low-cost, non-food biodiesel feedstock overseas.
Jatoil will supply oil from the Jatropha plant for biodiesel production. Jatoil is moving directly into Jatropha oil production by partnering with local companies and communities in Asia to supply Jatropha oil to the fast-developing Asian economies and Europe where the EU is mandating increasing levels of biofuel usage.”
Jatoil also supports the recent call by Caltex Australia (see below) for a transition in Australia to biodiesel derived from non-food feedstocks. Jatoil’s entire business is based on supplying the next generation of biodiesel feedstocks that are both non-food and environmentally and also socially responsible.”
Jatropha oil is emerging as the global biofuel feedstock of choice. The BP-backed D1 Oils last month announced a major expansion of its Jatropha operations in India, and one successful Australian biofuels company (previous post) recently announced that over time it planned to convert from its existing palm oil operations to Jatropha.
Extract from the Caltex press release dated 27 November 2007:
Caltex supports development of biofuels in Australia. We achieved our volume target for 2006 under the former government’s Biofuels Action Plan and have already achieved our target for 2007. We advocate continuation of this plan under the new Labor government.
We also see the need for the government to prepare a comprehensive plan for biofuels in Australia through to 2020, including consideration of some pressing short term regulatory and financial issues including the biodiesel blend standard and the longer term transition to non-food biofuels feedstocks.”