The Shanghai stock exchange called off a hearing about Syngenta Group’s proposed 65 billion yuan ($9.4 billion) initial public offering, adding another hurdle on the road to the biggest planned listing of the year.
(Bloomberg) — The Shanghai stock exchange called off a hearing about Syngenta Group’s proposed 65 billion yuan ($9.4 billion) initial public offering, adding another hurdle on the road to the biggest planned listing of the year.
The exchange didn’t give a reason for the move, which came just a day before the meeting was scheduled, saying only that “the situation warrants a cancellation.” Official approval is key for the seed and fertilizer giant to kick off its long-awaited IPO.
China National Chemical Corp., known as ChemChina, acquired the Swiss company for $43 billion in 2017, and on-again, off-again preparations for a listing have been going on since 2019.
At $9.4 billion, Syngenta’s IPO would be the world’s largest this year, according to data compiled by Bloomberg.
A Syngenta spokesperson was unable to comment immediately on the Shanghai exchange’s cancellation of the hearing, which was announced in a statement.
Since the takeover of Syngenta, China’s biggest foreign acquisition to date, the company has incorporated other ChemChina agricultural units including Adama Ltd. and the agriculture business of state-owned conglomerate Sinochem Corp.
ChemChina in 2019 began internal work to prepare Syngenta for a listing, Bloomberg News reported at that time. The preparations have been ongoing since then, with ChemChina holding talks with potential investors for investments prior to the public offering. Syngenta filed its prospectus to list on Shanghai’s Nasdaq-style Star Board about 20 months ago.
The Shanghai bourse briefly suspended Syngenta’s application in 2021, pending an update to information about its earnings. The approval process resumed in October that year. The IPO has been slow still. Poor equity-market conditions last year likely delayed Syngenta’s plans, Bloomberg Intelligence analysts said.
China International Capital Corp. and BOC International Holdings Ltd. are sponsors of the planned share sale.
(Updates with Syngenta spokesperson unable to comment, in fifth paragraph)
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