ZURICH : Swiss agrichemicals and seeds group Syngenta has withdrawn its application to float on Shanghai’s tech-focused STAR Market and will instead seek a listing on the main board of the Shanghai Stock Exchange.
Thursday’s step came as Syngenta sought to rescue its 65-billion-yuan ($9.4-billion) IPO, which hit the buffers after authorities canceled an approval meeting in March.
“Syngenta Group has withdrawn its STAR Market IPO application and will immediately apply for a public listing on the main board at the Shanghai Stock Exchange,” the Chinese-owned company said in a statement.
It said it decided to switch focus following China’s regulatory changes to more clearly define the roles of different stock markets.
“We believe Syngenta Group, as a leading global agricultural technology company, fits better on the main board,” the company said.
The change was in line with the decision that the main board was meant to support large-scale companies with mature business models and stable earnings performance, it added.
“This main board listing will enable Syngenta Group to access more diversified investors and will be conducive for the company’s long-term value.”
A rival of U.S. company Corteva and German firms BASF and Bayer, Syngenta was bought for $43 billion by ChemChina in 2017 and folded into Sinochem Holdings Corp in 2021.
The company reported its highest ever annual sales and earnings for 2022, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 20 per cent, at $5.6 billion.
Sales rose 19 per cent at $33.4 billion as farmers bought more seeds and pesticides to increase production and the company passed on increases in the prices of raw materials.
In March, the Shanghai Stock Exchange cancelled a hearing to review Syngenta’s initial public offering (IPO) plan, a filing posted on the exchange showed, but no reason was given.
The Chinese parent plans to keep a majority stake after the IPO, which is set to be one of the world’s biggest this year and expected to value Syngenta at around $50 billion.
($1=6.9121 Chinese yuan renminbi)
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