Syngenta's $9.5 bln IPO moves closer with Shanghai bourse hearing
Shanghai bourse to review IPO filing on March 29
Syngenta plans to raise around $9.5 billion
Flotation expected to be launched in June -sources
Adds detail, data, context
By John Revill and Julie Zhu
ZURICH/HONG KONG, March 22 (Reuters) -Syngenta's $9.5 billion flotation has moved a step closer after the Shanghai Stock Exchange scheduled a hearing next week for the Swiss agrichemicals and seeds company's listing plan.
A rival toU.S. company Corteva CTVA.N and German firms BASF BASFn.DE and Bayer BAYGn.DE, Syngenta wasbought for $43 billion by ChemChina in 2017 and folded intoSinochem Holdings Corp in 2021.
The Chinese parent plans to keep a majority stake after the initial public offering (IPO), which is set to be one of the world's biggest this year andexpected to value Syngenta at around $50 billion.
The Shanghai Stock Exchange said on Wednesdayit planned to conduct a hearing with the company to examine its listing applicationon March 29. Syngenta has also updated its prospectus with its latestfinancial figures.
It shows the companyaims to raise about 65 billion yuan from the flotation or about $9.44billion.
Just over 60% of the proceeds will be used to finance acquisitionsand to repay debt.
Around 20% will be allocated towards advanced agricultural technology-relatedresearch and development, according to the prospectus.
After Syngenta passes the hearing, the IPO will still require registration with the China Securities Regulatory Commission.
The company aims to launch the offering in June, two sources said, with one adding that itis seeking mainly Chinese investors as strategic shareholders.
Syngenta declined to comment, citing Chinese market regulations.
The float will likely be the four-year-old STAR board's biggest - providing a major boost after the scrapping of Ant Group's blockbuster listing in 2020.
The Nasdaq-style STAR Market topped the global charts for IPO fundraising in 2022 having raised $28.5 billion, Refinitiv Eikon data showed.
Syngenta first filed its listing application in July 2021 and has since gone through three rounds of reviews with the Shanghai bourse.
The company reportedits highest ever annual sales and earnings on Wednesday. Its2022 earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20% to $5.6 billion onsales up19% at $33.4 billion.
Much of the growth came from China, where the company added 136 more Modern Agricultural Platform centres that offer training to farmers and sell its seeds and pesticides, taking its total there to 628.
"All business units saw double-digit growth, benefitting from high demand for products and services designed to promote yield increases and sustainable farming methods," Syngenta said.
But during the fourth quarter, its earnings fell after being hit by higher raw materials costs. It also spent more on reorganising its business and set cash aside to cover macro-economic uncertainties.
ItsEBITDA fell25% to $900 million onsales up 4% to $7.5 billion driven by its seeds business.
"As previously indicated, farmers accelerated their purchases earlier in the year due to supply concerns, moderating fourth quarter growth," the company said.
($1 = 6.8830 Chinese yuan renminbi)
Reporting by John Revill and Julie Zhu in Hong Kong; editing by Mark Potter and Jason Neely
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
