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Views Article – Sharenet Wealth

Share Picks

Foresight Solar Fund IPO

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Sharenet Securities invites you to participate in the Private Placement of shares in Foresight Solar Fund Ltd.

Brief overview

Foresight Solar Fund Ltd. Is a Jersey registered, closed-end investment company that invests in a portfolio of predominantly UK operated solar plants. The company had its IPO on the main board of the London Exchange in 2013, in which way it managed to raise £150 million.

The company’s solar farms generate 470 MW of clean energy, which does not sound like much compared to big coal and gas powered stations. The company operates 18 ground based solar power plants with a gross asset value of £650 million that it earns a 1% management fee on. The investment managers do not have performance fees or acquisition fees.

This will be the first fund, on the JSE, that solely invests in solar or renewable energy. I do believe renewable and green energy is the future of energy and one day the world will be without fossil fuels, this transition will come sooner rather than later. We see the evidence with the major strides that companies like Tesla are doing in this particular industry and countries like Sweden that aims to be completely dependent on renewable energy by the year 2040.

IPO details

The investment team, that manages the fund, started in 2007 and launched their first fund in 2008. The company is looking to raise £50 million (R784 million) in the local market with a minimum of 250 million shares. RMB will be the sole bookrunner of the deal.

Investment Policy

The company will mainly invest in “ground based, operational solar assets, predominantly in the UK”. The part of the investment that does not fit “Operational and UK based” will not exceed 25% of the investment. The company also highlighted the fact that although it’s not part of their investment policy, they will keep dividend growth constant at a rate of inflation. The company’s current investment policy does not allow for financial gearing, but will seek to get investor approval and include gearing as part of their mandate.

“Foresight Solar Fund will see to achieve these returns through active management of its solar power plants in accordance with Foresight Solar Fund’s investment policy and will look to grow its investment portfolio through additional asset acquisitions throughout its life.”

How to invest

JSE private placements closes on Wednesday the 29th of March and anticipated listing date is Monday the 3rd of April. Application through us is just for Sharenet Securities account holders, but accounts can be opened within 3-4 days from receiving signed application forms and FICA documents. Due to time constraints only Sharenet account holders will be able to take part via our trading desk.

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daniel

Daniel Nel
Analyst and Securities Trader 

Daniel is a full-time analyst and securities trader, and is responsible for equities research across industries. Although he grew up in a small town in the Klein Karoo, Daniel has always been interested in both locally and internationally traded companies. Daniel has been actively investing and trading on the JSE and other global exchanges since starting his Bcom Investments Degree at the University of Stellenbosch, which he completed in 2014 . During his studies, Daniel worked as an intern at Kruger International in Johannesburg in 2015, gaining valuable experience from Hein and Mia Kruger. He is currently a CFA candidate.


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