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Syngenta will utilize the profits from its $10 billion Shanghai IPO for acquisitions and growth. Syngenta is a Swiss agrochemicals company. Arnd Wiegmann/Arnd Wiegmann/Arnd Wiegmann/Arnd Wiegmann/
John Revill, Meg Shen, July 4, 2021
Syngenta Group said on Friday that the revenues from its planned $10 billion initial public offering (IPO) will be used to fuel internal expansion and an acquisition frenzy in order to capture more of the $100 billion seed and spray industry.
The Shanghai Stock Exchange uploaded the company’s prospectus to list on Shanghai’s Nasdaq-style STAR Market online on Friday, confirming facts published by Reuters earlier this week after the application was filed on Wednesday.
“To satisfy expanding market needs, Syngenta Group will expand and renovate its production facility and conduct strategic acquisitions,” the business stated in the document.
Syngenta’s proposal to list on the STAR Market was accepted, according to a Shanghai Stock Exchange document, and the business wants to issue up to 2.79 billion shares.
The Shanghai Stock Exchange must still approve Syngenta’s IPO, as well as registration with the China Securities Regulatory Commission.
According to Reuters, the IPO, which is expected to be the world’s largest this year, will value the pesticides and seeds company based in Basel, Switzerland, at over $60 billion, including debt, or $50 billion without it.
The IPO is likely to be larger than the $6.2 billion Hong Kong IPO of video-sharing site Kuaishou Technology. It will almost certainly be the largest IPO for the two-year-old STAR board, a significant boost following the last-minute cancellation of Ant Group’s spectacular IPO last year due to regulatory issues.
According to the individuals, who declined to be identified because they were not authorized to speak to the media, the floatation is likely to take place by the end of 2021.
Syngenta is also considering a secondary listing, which could happen less than a year after its initial public offering, according to the people. Exchanges in Zurich, London, and New York are among the options being studied.
The proceeds will be used to support acquisitions, including the already announced purchases of Yangnong Agrochemical and Valagro, according to the filing.
Other projects that will benefit from the funds raised include advanced agricultural technology research, production expansion, and facility upgrades and maintenance.
The money will also be used to build its modern agricultural service platform, which trains Chinese farmers, and to pay off long-term debt, according to the company.
ChemChina, which was integrated into Sinochem Holdings Corp this year, purchased the Swiss seeds and crop protection company in 2017 for $43 billion.
The deal is China’s largest takeover of a foreign corporation, with the goal of employing Syngenta’s top-tier pesticides and patent-protected seeds to boost domestic agricultural output dramatically.
Syngenta has combined with Israeli agrochemical firm ADAMA and Sinochem’s fertiliser and seed business after being taken over.
Syngenta, the world’s No. 1 crop protection firm and No. 3 seed supplier, competes in the speeds and sprays industry with BASF, Bayer, and Corteva, a US agrochemicals company.
In 2020, the corporation will employ 49,000 people worldwide and produce $23.1 billion in revenue. The United States and Brazil are its two largest markets, although China is fast expanding.
Syngenta reported $7.1 billion in first-quarter sales, up 20% year over year, and $1.5 billion in earnings before interest, taxes, depreciation, and amortization.
According to the prospectus, net profit increased by 72 percent in the first quarter.
Reuters
Syngenta chemchina
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Markets & Initial Public Offerings
Syngenta has filed for a $10 billion IPO in Shanghai, which could be the largest in the world this year.
ChemChina purchased the Swiss seed and crop protection company in 2017 for $43 billion.
Markets & Initial Public Offerings
ChemChina hopes to generate $10 billion from Syngenta’s initial public offering in Shanghai.
The IPO could be one of the most significant in the world this year.
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