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Listing of Future Forests (Fiji) Limited


The South Pacific Stock Exchange (SPSE) is pleased to announce that Future Forests (Fiji) Limited (FFF) has successfully listed both its Ordinary Shares and Convertible Notes instruments on the Main Securities Board and the Interest Rate Securities Board of the Exchange respectively as of today 21st November 2011. FFF was incorporated in Fiji and focuses on the sustainable, large-scale planting and harvest of one of the world's great hardwood timbers called Tectona Grandis, most commonly known as Teak. Established in 2005, FFF has since invested considerable funds and planted over 140,000 Teak trees in the Province of Ra.

The two securities have different attributes as far as the nature of the listed instruments is concerned.  The Ordinary Shares will yield dividends with strong potential share dividends from 2017 on-wards, however there will be a sturdy capital growth expectation from this steadily growing renewable natural resource from the initial years of listing. Moreover, should the company successfully develop and sell the teak products from early thinning, dividend payments may commence before 2017. The Convertible Notes on the other hand, is second of its kind to be listed in Fiji after BSP Convertible Notes Limited (BCN) was listed on the SPSE in 2010. The FFF Convertible Notes, which is coded on the SPSE as FFFN will pay a fixed interest rate of 7.5% per annum payable twice yearly on 1st January and 1st July for a maximum of 5 years. These notes are mandatorily convertible to Ordinary Shares either after 5 years from the date of listing or upon the choice of the noteholder for an early conversion which will occur at every 1st January coupon payment date. From the capital raised, the company intends to utilize the funds to establish new teak plantations, manage existing plantations, construct the first timber mill and timber utilisation plant and develop a larger saw mill and a furniture production plant.

According to the Exchange Chief Executive Officer, Ms Jinita Prasad “FFF is the very first forestry company to be listed on our local stock market now expanding the nature of the listed companies currently listed, with a woodland product of Teak. FFF has also added to the multiplicity of the financial products offered through the Fiji market, listing both shares and notes. While the return from the shares from the initial years will be in form of capital growth there is an anticipation of dividend payments to be distributed from 2017 on-wards. The notes will however, allow the investors to enjoy the fixed coupon during this period until the mandatory conversion or upon the choice of the noteholder”. Ms Prasad further added that “FFF will also give the investors an opportunity to diversify into an agro-industry company listed on the SPSE and with a continued forecast growth in the global teak prices, it is anticipated that this valuable tropical hard wood timber company will fuel long-term returns for the stakeholders”. Ms Prasad concluded by saying “the listing of FFF marks a milestone and has been timely as 2011 has also being declared the International Year of Forests by the United Nations General
Assembly which aims to raise awareness on sustainable forest management. This international event is well supported by FFF as the company subsequent to listing plans to continuously expand plantations and increase output through best silviculture practices which is in-line with the United Nation’s obligation to influence and assist societies throughout the world to conserve biological diversity in forests and ensure that the use of forest resources is equitable and ecologically sustainable”.

The company has successfully raised $433,224 during the Initial Public Offer and has now successfully quoted 21,200,785 Ordinary Shares on the SPSE trading platform while $1,506,698 has been raised through the Convertible Notes issue with a total of 1,506,698 notes being quoted on the platform. The number of shareholders and noteholders after the close of the offer period stands at 133 and 95 respectively.

The ordinary shares and the notes offer was managed by Kontiki Stockbroking Limited (KSB), whereby the notes had a subscription price of $1.00 per note and the shares had an Initial Public Offering (IPO) price of $0.80 per share. At close of the morning trading session today, the share price for FFF rose by 2.50% to $0.82 while there were no trades in FFFN, hence the share price remains at $1.00. The Market Capitalization for FFF and FFFN stood at $17,384,644 and $1,506,698 respectively at close of morning trading today with FFF contributing 2.34% and FFFN contributing 0.20% towards the overall market capitalization of $744,089,168. The end of day prices will be available after the close of trading at 3.30pm.

Investors and existing shareholders now have an opportunity to buy or sell shares and notes in Future Forests (Fiji) through licensed stockbrokers in the secondary market. For investors, it is very important to get proper advice in order to ensure that their financial objectives are aligned with the investment products they are looking at investing in.

Should you require any further information on the issue, please do not hesitate to contact us.

Jinita Prasad
Chief Executive
Market Statistics


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