Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Syngenta's $10 billion Shanghai IPO to fund growth and acquisitions

Stock MarketsJul 03, 2021 12:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A logo is seen at the headquarters of agricultural chemical maker Syngenta in Basel, Switzerland January 30, 2020. REUTERS/Arnd Wiegmann

By Meg Shen and John Revill

HONG KONG/ZURICH (Reuters) -Syngenta Group will use the proceeds from its expected $10 billion initial public offering (IPO) to fund internal growth and an acquisition spree to snare more of the $100 billion market for seeds and sprays, the agrichemical giant said on Friday.

The company's prospectus to list on Shanghai's Nasdaq-style STAR Market was posted online by the Shanghai Stock Exchange on Friday, confirming details reported this week by Reuters after the application was filed on Wednesday.

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

The Shanghai Stock Exchange filing showed Syngenta’s application to list on the STAR Market had been accepted and the company plans to issue up to 2.79 billion shares.

Syngenta's IPO still requires the approval of the Shanghai Stock Exchange and registration with the China Securities Regulatory Commission.

The flotation, set to be the world's biggest this year, will value the maker of pesticides and seeds based in Basel, Switzerland, at about $60 billion including debt, or $50 billion without, sources have told Reuters.

The float is expected to be bigger than video-sharing platform Kuaishou Technology's $6.2 billion Hong Kong IPO. It will likely be the two-year-old STAR board's biggest - a major boost after the 11th-hour scrapping of Ant Group's blockbuster listing last year due to regulatory trouble.

The filing means the flotation is likely to take place by the end by 2021, said the sources, who were not authorised to speak to media and declined to be identified.

A secondary listing for Syngenta is also being considered that could take place less than a year after its debut, with exchanges in Zurich, London and New York among the options being examined, the people said.

Proceeds will fund acquisitions, including deals already announced to buy Yangnong Agrochemical and Valagro, the filing said.

Cash raised will also be used on other projects such as advanced agricultural technology research, production expansion, and upgrading and maintaining its facilities.

Funds will also be used to expand further its modern agricultural service platform - which trains farmers in China - and to repay long-term debt, it said.

The Swiss seeds and crop protection giant was bought in 2017 for $43 billion by ChemChina, which was folded into Sinochem Holdings Corp this year.

The acquisition remains China's biggest takeover of a foreign company and is aimed at using Syngenta's top-tier chemicals and patent-protected seeds to drastically improve domestic agricultural output.

Since being taken over, Syngenta has been merged with Israeli agrochemical firm ADAMA and the fertiliser and seed business of Sinochem.

Syngenta, the world's No.1 crop protection maker and No. 3 seed supplier, competes with Germany's BASF, Bayer (OTC:BAYRY) and U.S. agrochemicals company Corteva (NYSE:CTVA) in the speeds and sprays market.

The company employs 49,000 people globally and generated sales of $23.1 billion in 2020. Its biggest markets are the United States and Brazil, while it is growing rapidly in China.

Syngenta reported first-quarter sales of $7.1 billion, 20% higher year-on-year, with earnings before interest, tax, depreciation and amortisation rising 19% to $1.5 billion.

Net profit rose 72% in the first quarter, the prospectus said.

($1 = 6.4705 Chinese yuan renminbi)

Syngenta's $10 billion Shanghai IPO to fund growth and acquisitions
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Naimul Islam Fahim
Naimul Islam Fahim Jul 02, 2021 11:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email