Syngenta’s $ 10 billion Shanghai IPO to fund growth and purchases by Reuters

By Meg Shen and John Revill

HONG KONG / ZURICH (Reuters) – The Syngenta Group expects to earn $ 10 billion in initial public offering (IPO) money to finance internal growth and capture a $ 100 billion seed market in seeds and sprays, the giant agricultural agent said. on Friday.

The Shanghai Stock Exchange’s online listing for the Shanghai Nasdaq-style STAR market was published online by the Shanghai Stock Exchange on Friday, confirming the details reported by Reuters this week after the application was filed on Wednesday.

“The Syngenta Group will expand and renovate its production facilities and establish a strategic acquisition to meet market needs,” the company said in the document.

When the Shanghai Stock Exchange was introduced, Syngenta’s application for listing on the STAR market was approved and the company plans to issue 2.79 billion shares.

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

The world’s largest flotation this year will value the Basel (Switzerland)-based pesticide and seed maker valued at about $ 60 billion in debt, or $ 50 billion without debt, sources told Reuters.

Kuaishou Technology’s video-sharing platform Kuaishou Technology is expected to be larger than Kuaishou Technology’s $ 6.2 billion Hong Kong IPO. It will probably be the largest two-year STAR committee – it was a big boost after the disappearance of Ant Group’s blockbuster list last year due to regulatory issues in the 11th year.

The filing said the flotation is likely to end by 2021, said sources were not allowed to speak to the media and refused to identify it.

It is also looking at Syngenta’s secondary list, which could have been made a year and made a year earlier, with options being considered for exchanges in Zurich, London and New York.

The results will fund the acquisitions, including agreements already announced to buy Yangnong Agrochemical and Valagro, according to the filing.

The money raised will also be used for other projects, such as advanced agricultural technology research, production expansion and the renovation and maintenance of facilities.

The funds will also be used as a platform for modern agricultural service (which trains farmers in China) and to pay off long-term debt, he said.

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

The purchase remains the largest acquisition by the Chinese foreign company and aims to use Syngenta’s top-level chemicals and patent-protected seeds to dramatically improve domestic agricultural production.

Since taking office, Syngenta has merged with the Israeli agrochemical company ADAMA and the Sinochem fertilizer and seed business.

Syngenta, the world’s No. 1 producer and 3rd seed supplier for crop protection, competes with Germany’s BASF, Bayer (OTC 🙂 and the US agrochemical company. Corteva (NYSE 🙂 speed and spray market.

The company employs 49,000 people worldwide and generated sales of $ 23.1 trillion by 2020. Its largest markets are the United States and Brazil, while China is growing rapidly.

Syngenta had sales of $ 7.1 trillion in the first quarter, up 20% year-on-year, while interest, taxes, depreciation and amortization and earnings before 19% rose $ 1 trillion.

Net income rose 72% in the first quarter, the brochure says.

($ 1 = $ 6,4705)