The Shanghai Stock Exchange will hear about Syngenta’s $9.5 billion IPO next week.
Syngenta, a competitor of Corteva (CTVA.N), BASF (BASFn.DE), and Bayer (BAYGn.DE), was acquired by ChemChina for $43 billion in 2017 and merged into Sinochem Holdings Corp in 2021.
With Syngenta’s $50 billion IPO, the Chinese parent expects to retain a controlling interest.
On Wednesday, the Shanghai Stock Exchange announced a March 29 hearing for the company’s listing application. Syngenta also amended its prospectus.
The offering seeks to raise 65 billion yuan, or $9.44 billion.
Acquisitions and debt repayment will account for 60% of the proceeds.
The prospectus allocates 20% to advanced agriculture technology research and development.
Syngenta’s IPO will need CSRC registration after the hearing.
Two sources said the business plans to offer in June, seeking mostly Chinese key shareholders.
Chinese market laws prevented Syngenta from commenting.
After Ant Group’s 2020 delisting, the four-year-old STAR board’s biggest float will certainly boost it.
Refinitiv Eikon statistics show that the Nasdaq-style STAR Market raised $28.5 billion in 2022.
The Shanghai bourse reviewed Syngenta’s listing proposal three times since July 2021.
Wednesday saw the company’s biggest yearly revenues and profitability. Sales climbed 19% to $33.4 billion, and EBITDA rose 20% to $5.6 billion in 2022.
The corporation added 136 additional Modern Agriculture Platform centers in China, bringing its total to 628.
“All business divisions achieved double-digit growth, benefiting from robust demand for products and services aimed to boost yield improvements and sustainable farming,” Syngenta stated.
Higher raw material costs hurt its fourth-quarter earnings. It spent more on corporate reorganization and saved for macroeconomic risks.
Seed sales drove revenues up 4% to $7.5 billion and EBITDA down 25% to $900 million.
“As previously mentioned, farmers expedited their purchases earlier in the year owing to supply worries, reducing fourth quarter growth,” the business said.
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