Syngenta gets the nod to launch US$9.1 billion Shanghai IPO, anchoring the world’s biggest stock sale this year in China’s commercial hub

Shanghai’s stock exchange has approved Syngenta Group’s 65 billion yuan (US$9.1 billion) initial public offering (IPO), giving its green light to what could be the world’s largest equities sale this year in China’s commercial hub.

Syngenta planned to sell up to 2.78 billion yuan-denominated A-shares to fund its research and development, upgrade its agricultural platform, support global acquisitions and repay long-term debts, according to its draft prospectus.

The company was queried on its business scope and its position in the global agrochemicals industry to determine whether it qualified as a blue-chip company eligible to list on the Main Board of China’s premier equity market, the Shanghai Stock Exchange said in a statement. It was also asked about its corporate governance and internal controls to ensure that the risks from its worldwide operations and acquisitions are controllable, the exchange said.

The green light was a deft turnaround for Syngenta, after a dramatic snag in March when the Shanghai exchange abruptly scrapped its IPO review on the eve of the scheduled meeting. The Switzerland-based company, 99.1-per cent owned by state-owned China National Chemical Corporation (ChemChina) since 2017, last month formally withdrew its Star Market IPO plan to switch to Shanghai’s Main Board.

Syngenta’s IPO – underwritten by China International Capital Corp (CICC), BOC International and Citic Securities – would eclipse the US$4.37 billion offering last month by the US consumer health company Kenvue, according to Bloomberg’s data. It would also be China’s second-largest offering after Agricultural Bank of China’s US$10 billion flotation in 2010.