FSF proposed the offer for subscription at 107p for new ordinary shares in order to capitalise on a pipeline of 22 potential acquisitions.
It had initially hoped to purchase 14 properties totalling £43.2m available exclusively to the investment trust, with a further eight worth £33.7m, and will utilise an RCF to make this happen.
Despite the relative shortfall, chair of FSF Richard Davidson described the raise as “another significant milestone” for the trust.
“It has been a busy first eight months for the company, having fully deployed the proceeds of the company’s IPO and now undertaken a further issuance of new shares,” he said. “The net proceeds of the Issue, along with the proceeds of a revolving credit facility that is nearing completion, will be used to acquire our imminent pipeline of forestry and afforestation assets and to further enhance the growing reach and impact of FSF.”
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Co-managers of the trust Robert Guest and Richard Kelly also expressed their delight at the “positive reception from both existing and new investors”, adding they were encouraged by the level of interest.
“We are excited to deploy the proceeds of the issue into our pipeline of mostly afforestation opportunities, that offer attractive capital appreciation potential whilst further extending the direct contribution FSF makes to the twin fights against climate change and biodiversity loss,” they said.
This is not the first time reality has failed to match the company’s ambition. In November 2021, the firm succeeded in raising £130m at IPO despite targeting £200m.