Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

ChemChina seeking $10 bln in Syngenta IPO, likely world's biggest float of 2021

06/30/2021 | 03:13am EDT

* Syngenta Shanghai IPO would be world's largest this year

* Secondary listing also being considered -sources

* Company would likely be valued at $50 billion -sources

ZURICH/HONG KONG, June 30 (Reuters) - ChemChina is aiming to raise around $10 billion from a Shanghai IPO for Swiss agrichemical giant Syngenta Group, in what is set to be the world's largest flotation this year, sources with direct knowledge of the matter told Reuters.

ChemChina, which became part of Sinochem Holdings Corp last month, is also considering a secondary listing for Syngenta that could take place less than a year after its debut, with exchanges in Zurich, London and New York among the options being examined, sources said. Hong Kong is also being considered but is not a frontrunner, said one of the sources.

Syngenta is likely to be valued at around $60 billion including debt, or $50 billion without, said the sources who were not authorised to speak to media and declined to be identified.

That compares with the $43 billion price tag ChemChina paid for Syngenta in 2017 - the country's biggest-ever foreign takeover aimed at using the Swiss firm's portfolio of top-tier chemicals and patent-protected seeds to drastically improve domestic agricultural output.

Since being taken over, Syngenta - the world's No.1 crop protection maker and No. 3 seed supplier - has been merged with Israeli agrochemical firm ADAMA and the fertiliser and seed business of Sinochem.

The prospectus for the initial public offering on Shanghai's STAR market could be lodged as soon as Wednesday, the sources said.

Syngenta spokesperson Saswato Das declined to comment. Representatives for ChemChina and Sinochem could not be reached for comment outside of regular business hours.

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

About one-third of the proceeds from the Shanghai IPO will be used to repay debt, with the rest spent on research and development and new businesses, the sources said.

Syngenta competes with Germany's BASF, Bayer and U.S. agrochemicals company Corteva, employing 49,000 people globally. It generated sales of $23.1 billion in 2020 and the United States and Brazil are its biggest markets.

Benefiting from rising commodity prices which helps farmers afford its seeds and sprays, Syngenta's sales increased 20% during the first quarter of 2021. Farmers have also rebuilt their stocks of seeds and pesticides after running them down during the pandemic last year.

It expects to see higher spending by farmers to feed the world's growing population and as changing climate conditions stoke demand for products like drought-resistant seeds.

Demand in China has also boomed, with Syngenta's first-quarter sales there increasing 41%. It has some 400 training centres across the country teaching farmers how to increase productivity.

As part of the listing process, Syngenta has conducted a so-called "tutoring" process with banks which is unique to China and sees bankers coach company executives on IPO-related issues.

China International Capital Corp, Bank of China unit BOCI and Citic Securities are leading the float, Syngenta has said.

More banks are expected to be part of the deal at a later date, the sources said.

Companies have raised $8.8 billion via IPOs on the STAR Market so far this year, making it the seven-biggest market globally, far behind the Nasdaq, New York and Hong Kong, Refinitiv data showed.

Beijing has been keen to nurture the Nasdaq-like bourse amid Sino-U.S. tensions that have also triggered concerns about prospects for Chinese companies listing in the United States. (Reporting by John Revill in Zurich and Julie Zhu in Hong Kong; Editing by Edwina Gibbs)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BASF SE -0.23% 63.79 Delayed Quote.-1.44%
BAYER AG -0.03% 46.495 Delayed Quote.-3.45%
CHINA INTERNATIONAL CAPITAL CORPORATION LIMITED 0.00% 20.75 End-of-day quote.-1.19%
CITIC SECURITIES COMPANY LIMITED -0.61% 26.04 End-of-day quote.-11.43%
KUAISHOU TECHNOLOGY -9.67% 86.85 End-of-day quote.0.00%
Latest news "Economy & Forex"
11:52aPRESIDENCY OF REPUBLIC OF TURKEY : “We have established a social welfare system that leaves no one unprotected in our country”
PU
11:10aHuawei CFO leaves Canada after U.S. agreement on fraud charges, detained Canadians head home
RE
10:55aChina welcomes Huawei executive home, but silent on freed Canadians
RE
10:29aIndia merger of Sony, Zee to create TV powerhouse challenging Disney
RE
10:21aVietnam to relax COVID-19 restrictions to revive pandemic-hit economy
RE
09:55aHuawei's Meng arrives in Shenzhen after release from Canada
RE
09:55aHuawei chief financial officer meng wanzhou arrives in shenzhen, china after release from canada
RE
09:48aHundreds of Russians join Moscow protest over parliamentary election
RE
09:14aTwo Canadian detained by China for more than 1000 days return home -local media
RE
09:14aTwo canadians detained in china for more than 1,000 days arrive in calgary, received by prime minister justin trudeau-local media
RE
Latest news "Economy & Forex"