Caixin
Jul 03, 2021 05:47 AM
BUSINESS & TECH

Syngenta Seeks $10 Billion IPO on Shanghai’s STAR Market

What’s new: Syngenta Group Co. filed an application for a 65 billion yuan ($10 billion) initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market, according to a prospectus posted online by the Shanghai Stock Exchange.

The agriculture giant owned by China National Chemical Corp. (ChemChina) plans to issue 2.79 billion shares before any overallotment, or 20% of its total equity. The online status shows that the application was accepted, pending inquiry and reviews by the listing committee.

The company said it will use proceeds from the IPO to fund research and development of cutting-edge agricultural technologies, expansion, upgrading and maintenance of production assets, global acquisition projects and repayment of debt. China International Capital Corp. (CICC) and BOC International are listed as sponsors.

Bloomberg previously reported that Syngenta could be valued at as much as $60 billion. A secondary listing is also being considered that could take place less than a year after the debut, with exchanges in Zurich, London and New York among the options under consideration, Reuters reported, citing people familiar with the matter.

The background: Switzerland-based Syngenta AG was previously publicly traded but delisted in 2018 after its purchase by state-owned ChemChina in a $43 billion deal, China’s biggest takeover of a foreign company.

ChemChina last year merged Syngenta with Israeli-based Adama and its own agricultural business. After the restructuring, Syngenta reported a strong pick-up in revenue growth in the first quarter as sales rose 20% to $7.1 billion. That marked an acceleration from full-year 2020 when the company’s revenue grew by a more modest 5% to $23.1 billion. Net profit rose 72% in the first quarter.

Syngenta is the world’s No.1 crop protection maker and No. 3 seed supplier, according to the prospectus. Its sales in China rose 41% to $2.2 billion, accounting for 31% of the group’s total in the first quarter.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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