Syngenta, Swiss agrichemicals giant owned by ChemChina, kick-starts process to list on Shanghai’s Star Market

Syngenta was acquired by state-backed ChemChina for US$43 billion in 2017 in biggest takeover of a foreign firm by a Chinese entity

Basel-based agrichemical giant files compulsory ‘tutoring report’ with Chinese regulatory commission, seen as a precursor to a stock listing

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ChemChina’s acquisition of Syngenta remains the largest takeover of a foreign company by a Chinese firm. Photo: AFP

Published: 6:30am, 22 Jun 2021Updated: 9:49pm, 22 Jun 2021

Syngenta Group, owned by state-backed ChemChina or China National Chemical Corp, has kick started the process to possibly list on the Shanghai Stock Exchange’s Nasdaq-like Star Market by preparing its executives for the outcome.

The Swiss agrichemicals giant filed a pre-listing “tutoring report” with the China Securities Regulatory Commission (CSRC) on Monday. CICC, BOC International and Citic Securities, the three investment banks that are advising Syngenta on the IPO, will provide the training, according to its filing.

The company’s senior executives will be trained on how to prepare initial public offering (IPO) documents in compliance with the Star Market’s listing rules , as part of a compulsory pre-listing tutoring procedure. The procedure, which can take from three to 12 months, is required of listing applicants to the Shanghai or Shenzhen stock exchanges.

The 250-year-old group based in Basel is at the cutting edge of biotechnology and developed the first genetically modified cereal for human consumption. It fully sequenced the DNA of the rice genome in 2001.

The headquarters of ChemChina in Beijing. Investors will have to consider the ramifications of ChemChina being added to a blacklist of companies by the Pentagon in August last year. Photo: Reuters

ChemChina’s US$43 billion acquisition of Syngenta in 2017 remains the largest takeover of a foreign company by a Chinese firm. The Chinese parent committed to listing Syngenta within five years of closing the deal.