Foresight Sustainable Forestry Company 🌲🌲 - £FSF - Share chat

This investment company plans to list on the LSE, see here IPO announcement

It would be great if this was available on FT as soon as it goes life.

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Changed it to a request as that will hopefully gain enough votes before launch :+1: Oh, and nice find!!

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Voted! Be great to see this on float day.

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This is now life on PrimaryBid and is really quite tempting. I would very much hope that this will be available on FT as soon as possible, ideally on the free account.

This looks good. But I’m unclear why buy this, rather than say the etf WOOD, which sounds more global?

It depends on what you are after of course. WOOD is fine but only 4% invested in the UK. Moreover, many of the holdings of WOOD don’t actually own woodland, they buy timber to make products, like cardboard boxes or paper. My understanding is that Foresight’s fund will mainly own the woodlands which is why I find it attractive. There should be very little correlation with the stock market but probably other risks like weather, plant disease, reduction in demand etc.

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Very useful @cggb1978 thank you!

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November 24th seems to be float day.

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Have they announced the symbol yet?

According to PrimaryBid it’s LON:FSF so the ticker should be FSF.

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@sampoullain @mynameisgeraint are we able to get this on the IPO calendar ?

Updated title to show symbol

I will sort this, thanks @NeilB

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James Carthew at Citywire seems impressed and believes this could be more sustainable than previous forestry firms due its diversification into afforestation. From the prospectus they list the seed assets as 59% forestry and 38% afforestation. Almost all the assets in the Bidding stage of the pipeline are afforestation. They mention that they would hold onto most of their carbon credit until the 2030s when they expect the price to be much higher. They also seem pretty confident of eco-tourism and renewable energy co-location:

Forestry land often lends itself well to wind farm developments and run-of-river / run-of-hill stream
hydro projects. Increasingly wind farms may be co-located with battery storage in the future. These
sustainable infrastructure assets need road access, grid connections, electrical sub-stations and
other such utilities. Largely these involve leasing of the underlying land and a profit share
mechanism with the developer and/or future owner of the renewable energy or other sustainable
infrastructure assets. Wind turbines are now much larger in height than previously was required to
make them economical with the historic subsidies that were available and the planning constraints
that were in place. Positively for forest owners, in the post-subsidy world and with a revised attitude
from the planning authorities, larger turbine heights are now a reality. This means that wind turbines
can be ‘key-holed’ into forestry areas and the surrounding trees have a far less material impact on
the wind resource than was the case with smaller turbines.

At some forestry properties the landscape, access and overall site lends itself well for the
development of glamping and/or low impact wild camping businesses. Suitable sites are usually in
or adjacent to forests/woodlands in reasonably accessible beauty spots where the site offers rich
natural capital, biodiversity and stunning scenery. Foresight Group is exploring a number of such
opportunities in the Target Seed Forestry Assets.

Interesting tidbit - they mention new technologies such as Accsys’ as facilitating growth in timber.

I’ve wanted forestry exposure for some time so I think I’ll bite the PrimaryBid offer and get in at IPO. Downsides are probably that hefty 1.3% TER and lack of overseas assets but the UK is the least forested country in Europe by a huge margin and has a favourable climate so to put it bluntly there’s lots of work to do at home.

Investor flyer: https://media.umbraco.io/winston/zvaneqfv/fsfc-plc-teaser-october-2021.pdf

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Crap, I just tried signing up with PrimaryBid to realise that freetrade isn’t a linked partner :frowning:

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Hi. Do we know whether this will be available on FT when it lists?

What do you use with PrimaryBid?

I use Interactive Investor with Primary Bid. It’s one of the legacy brokers: the transaction fees can sting, the website’s pretty horrible (app’s slightly better but not Freetrade level), decent range of securities.

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Thanks. I was hoping to avoid transaction fees.

Watched a webinar with PB yesterday and they said they were still hoping to be able to use FT and were positive about FT.

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Foresight Sustainable Forestry Co PLC - forestry investment trust, managed by private equity firm Foresight Group LLP - Announces result of initial placing, subscription and intermediaries offer closed on Thursday. Says it raised gross proceeds of GBP130 million at initial public offering price of 100 pence. Admission to the London Main Market is expected next Wednesday. (*)

Source morningstar

(*) This should be 24 Nov 2021.

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