Shanghai exchange scraps meeting for Syngenta’s US$9.5 billion IPO, disrupting plans for world’s biggest offering of 2023
- Shanghai Stock Exchange scraps the listing meeting for Syngenta scheduled for Wednesday, saying the situation warranted a cancellation
- An index tracking the Star Market has declined about 30 per cent since inception; top attraction SMIC has slumped 40 per cent despite strong debut
The Shanghai Stock Exchange scrapped a meeting to evaluate the listing plan from Syngenta Group, China’s state-controlled seeds and agrichemicals powerhouse, delaying what could be the year’s biggest initial public offering (IPO).
The Swiss company, acquired by China National Chemical Corp (ChemChina) in 2017, plans to raise as much as 65 billion yuan (US$9.5 billion) from the sale of 2.78 billion new shares on the Science and Technology Innovation Board, or the Star Market, based on its preliminary prospectus lodged with the Shanghai Stock Exchange on March 22.
If approved, Syngenta’s IPO would surpass ADNOC Gas’s US$2.5 billion offering in Abu Dhabi in early March as the biggest this year. It will also eclipse the Star Market’s current record set by chip maker Semiconductor Manufacturing International Corp (SMIC)’s US$7.5 billion offering in July 2020.
“A possible explanation could be that Syngenta would be moved to Shanghai exchange’s main board for a listing because its size is a bit big for the Star Market,” said Dai Ming, a fund manager at Huichen Asset Management in Shanghai.
It will get listed eventually as food security is an issue of national importance, he added.