Foresight Sustainable Forestry Company PLC has announced its intention to undertake an IPO on the Main Market of the London Stock Exchange and seeks to fundraise £200m.
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. Foresight Sustainable Forestry Company is to be managed by Richard Kelly and Robert Guest of Foresight Group, a leading infrastructure and private equity manager. It will target a net asset value total return of more than CPI + 5% per annum on a rolling five-year basis once substantially invested.
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.”