Foresight Sustainable Forestry to float on London Stock Exchange
LONDON, UK: Foresight Sustainable Forestry Company PLC, an externally managed investment company that will invest in UK forestry assets, intends to undertake an initial public offering (IPO) on the Main Market of the London Stock Exchange, by way of an initial institutional placing, offer for subscription and intermediaries offer for a target issue of up to 200 million new ordinary shares, in aggregate, at an initial issue price of 100 pence per Ordinary Share.
Foresight Sustainable Forestry Company PLC was incorporated in the United Kingdom on 31 August 2021 as an externally managed investment company and will invest in UK forestry assets.
The Company’s investment objective is to generate an attractive net total return for shareholders over the longer term, comprising capital growth and aperiodic dividends, targeting sustainable impact through predominantly investing in sustainably managed commercial forestry assets including afforestation assets. The Company intends to carry on business as an investment trust.
Foresight Sustainable Forestry Company will target a net asset value total return of more than CPI + 5% per annum on a rolling five-year basis once substantially invested.
Foresight Sustainable Forestry Company estimates that the IPO proceeds will directly enable c.4 million tonnes of carbon sequestration from the atmosphere from new afforestation planting.
The Company will seek to make a direct contribution in the fight against climate change through forestry and afforestation carbon sequestration initiatives and will seek opportunities to preserve and enhance natural capital and biodiversity across its portfolio.
The Company is to be managed by Richard Kelly and Robert Guest of Foresight Group LLP, a leading infrastructure and private equity manager.
The Prospectus for the proposed IPO is due to be released in October 2021 and the close of the Initial Issue is expected to take place in November 2021.
The Company expects to apply for admission of its Ordinary Shares to the premium listing segment of the Official List of the Financial Conduct Authority and to trade on the London Stock Exchange’s main market for listed securities. The Company intends to carry on business as an investment trust.
Richard Davidson, prospective Chairman of Foresight Sustainable Forestry Company PLC, said: “Foresight Sustainable Forestry Company’s Board of Directors is pleased to be able to bring this significant investment opportunity for both institutional and retail investors to the equity capital markets.
Forestry provides a compelling investment opportunity, meeting investor requirements on climate, sustainability and ESG issues, inflation protection properties, and portfolio diversification. Over the long term, managing a portfolio of forestry assets is generally low risk, driven by growth in both volume and value as the trees mature.
We expect the significant shortfall in timber in the UK to push up timber prices in the coming years and are delighted to have Richard and Robert to manage the portfolio on behalf of shareholders, overseen by a strong independent Board.”
Bernard Fairman, Executive Chairman and Co-Founder of Foresight Group, said: “For some years now Foresight, as one of a very few significant players in this sector, has been looking to scale up its forestry investments in an appropriate structure for a wide range of investors to participate in and this LSE Main Market listed sustainable forestry company launch represents the next development in that journey. Forestry is a real asset, and a natural and growing store of value, independent of the economic cycle and if ever there was a time for the world to embrace investment into more trees, this is it.
In the UK, we import the vast majority of our sawn timber requirement, a situation which is not sustainable. The UK and global economies are re-opening and demand for timber is pushing significantly ahead of supply. There is an enormous drive for us all to use more sustainable building and other products.
With international recognition that sustainable forestry and afforestation can play a vital role in combatting climate change through net C02 emissions reductions, we truly believe that this is very much a fund of its time.”
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