6th Sep 2021 10:21
(Alliance News) – Foresight Sustainable Forestry Co PLC is seeking to raise GBP200 million in an initial public offering on London's Main Market, the company announced Monday.
The UK forestry investment trust, managed by private equity firm Foresight Group LLP, plans to issue 200 million shares at 100 pence each.
The prospectus for the proposed IPO is due to be released in October while the initial issue is expected to take place in November.
Foresight Sustainable Forestry Prospective Chair Richard Davidson commented: "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.
"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."
Foresight Sustainable Forestry claims that the IPO proceeds will directly enable around 4 million tonnes of carbon sequestration from the atmosphere from new afforestation planting.
Following the float, the company will be managed by Richard Kelly and Robert Guest of Foresight Group.
Jefferies International is acting as sole sponsor, coordinator and bookrunner for the float.
London-listed Foresight Group Holdings Ltd noted Monday's news.
"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," said Bernard Fairman, executive chair of Foresight Group Holdings.
Shares in Foresight Group Holdings were down 1.0% at 400.00p in London on Monday.
By Will Paige; [email protected]
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