Amidst a recent period of downturn in the Chinese equity market, Swiss agrichemicals and seeds firm Syngenta abandoned its request on Friday for a multibillion dollar listing on the Shanghai Stock Exchange.
Due to unfavorable market conditions, the intended initial public offering (IPO), which could have valued the Chinese-owned company at up to $60 billion, has been continually postponed since 2021.
“After careful consideration of the industry environment and the company’s development strategy, Syngenta Group has decided to withdraw its application for IPO on the main board of the Shanghai Stock Exchange,” the business announced on Friday.
According to a person familiar with the situation, the offering had, like other recent ventures, fallen through because of a slowdown in the Chinese market.
Saswato Das, a spokeswoman for Syngenta, declined to elaborate on the reasons behind the company’s withdrawal from the IPO.
When the conditions are perfect, Syngenta plans to look into other financial sources and relaunch the listing process, either in China or on another exchange.
Analysts in the market have previously mentioned London, Zurich, and Hong Kong as possible Syngenta IPO substitutes.
The securities watchdog, led by Wu Qing, the new chairman, promised to increase the monitoring of listing candidates and crack down on any infractions, which is why there has been a sudden chill in China’s IPO market, which was the largest in the world in 2022 and 2023.
Preliminary LSEG statistics showed that between January and March 2024, funds raised through China initial public offerings (IPOs) fell by two-thirds compared to the same period in the previous year to just $2.4 billion, the lowest amount of money raised in a quarter since the final quarter of 2018.
As recently as November of last year, executives from the Sinochem-owned business announced that Syngenta intended to go public in 2024. It was anticipated that the partial floating will raise about $10 billion.
Following Syngenta’s plea to withdraw its IPO, the Shanghai Exchange announced in a filing that it had finished reviewing the company’s application.
Preliminary LSEG statistics showed that between January and March 2024, funds raised through China initial public offerings (IPOs) fell by two-thirds compared to the same period in the previous year to just $2.4 billion, the lowest amount of money raised in a quarter since the final quarter of 2018.
As recently as November of last year, executives from the Sinochem-owned business announced that Syngenta intended to go public in 2024. It was anticipated that the partial floating will raise about $10 billion.
Following Syngenta’s plea to withdraw its IPO, the Shanghai Exchange announced in a filing that it had finished reviewing the company’s application.
A lackluster demand in important areas like Brazil has put strain on the earnings of the corporation.
According to Syngenta’s statement later on Friday, the Basel-based company’s sales decreased by 4% to $32.2 billion from $33.4 billion in 2022, while its earnings before interest, tax, depreciation, and amortisation dropped by 18% to $4.6 billion.
