ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
IPO

Syngenta files for year's biggest IPO with $10bn Shanghai listing

Proceeds to go toward renovations and 'strategic acquisitions': prospectus

State-owned ChemChina bought Syngenta for $43 billion in 2017 in China's largest overseas corporate takeover. (Source photos by Reuters and screenshot from Syngenta's website)

HONG KONG -- Syngenta Group, the ChemChina-owned Swiss agrichemical company, on Friday filed an application for an initial public offering to raise $10 billion on the Shanghai STAR Market.

The company plans to sell up to 2.79 billion shares, or a 20% stake, via the IPO, according to the prospectus.

The listing will be the largest IPO globally in 2021 and the biggest ever at the two-year-old STAR Market, a Nasdaq-style tech-heavy exchange. The IPO would value Syngenta at over $50 billion, one source said.

"Syngenta Group will expand and renovate its production facility and implement strategic acquisition to meet growing market needs," the company said in the prospectus.

State-owned ChemChina bought Syngenta for $43 billion in 2017 in China's largest overseas corporate takeover. Last year, ChemChina merged the Swiss company with Israel's ADAMA and the fertilizer and seed business of Sinochem, another of China's state-owned chemical firms.

Chinese regulators in March approved the merger of ChemChina with Sinochem, creating the world's largest such business by far with combined sales exceeding 1 trillion yuan ($154 billion).

China-based or owned companies are rushing to tap ample liquidity in global markets and take advantage of investor thirst for growth assets. So far this year, Chinese companies have raised over $50 billion across mainland, Hong Kong and U.S. exchanges, or about half the record volume of all of 2020, according to data from Dealogic.

More than 80 companies have raised over $10 billion in the STAR Market while another 27 have raised more than $15 billion in Hong Kong. China Tourism Group in June files for a Hong Kong IPO, which could raise between $7 billion and $10 billion, people familiar with the transaction said.

Syngenta Group said June 21 it had started the "tutoring" process with banks for a IPO. The tutoring process is unique to China, where investment banks involved in the process coach company executives on IPO-related issues. The first step in the IPO process in China indicated that Syngenta might list before its original target of 2022, which it revealed at the time of being acquired by ChemChina.

Syngenta employs about 49,000 in more than 100 countries, according to its website. The company now has four business units: Syngenta Seeds, Syngenta Crop Protection, ADAMA and Syngenta Group China. It reported sales of $7.1 billion in the three months ended March 31, up 20% from the same period last year, its latest earnings release shows.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more