U.K.-based The Global Sustainable Farmland Income Trust PLC seeks to raise as much as $300 million in a planned IPO in London in February 2020.
The farmland trust plans to issue up to 300 million ordinary shares valued at $1 apiece and trade on the premium segment of the London Stock Exchange's main market.
Net proceeds are expected to be roughly $295.8 million.
Placing and offer of subscription is open from Dec. 18 until Feb. 25, 2020, and the admission and dealings in the ordinary shares will commence Feb. 28, 2020.
The company targets an annual shareholder return of 7% to 8% over the medium to long term and a 2.5% dividend yield per year until it reaches 4.25% per year Sept. 30, 2022.
Proceeds from the flotation will be used to diversify its portfolio in terms of geography, crop type, property and tenant. In particular, the company plans to buy farmlands in the U.S., Europe, Australia, New Zealand, and some portions of Latin and South America.
The company is conducting due diligence, and in some cases discussions with owners, to acquire 18 farmlands in the U.S., Denmark, France, Australia, New Zealand and Portugal, which will then be leased to corporate and independent farmers.
Capital Advisory Partners Ltd. is the company's investment manager, while BDO LLP is the sponsor. Cantor Fitzgerald Europe acts as the financial adviser and sole book runner of the IPO.