2024.0329

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introduction： 3月29日，上交所发布公告称，瑞士农业化工巨头先正达集团提交撤回IPO文件申请，将终止对先正达在主板首发申请上市的审核。

** Author| ** First Finance and Economics Qian Tongxin

On the same day, Syngenta said in a statement sent to China Business News:"Based on comprehensive consideration of our own development strategy and the global industry environment, after careful study, we decided to withdraw the main board initial listing application." The company emphasized to reporters that the IPO was terminated as a "voluntary withdrawal" and will continue to pay attention to China's capital market.

Syngenta also stated in the statement:"The company will use multiple combination methods to continue to consolidate and enhance its leading edge in the global agricultural technology field, and restart the listing process at an appropriate time in the future."

Syngenta surprised the market by terminating the A-share IPO process. According to information from previous prospectus, Syngenta plans to raise approximately US$10 billion in public, and its valuation after listing can reach US$60 billion. It is expected to become the largest IPO in the A-share market in 2024.

Just in November last year, Syngenta said in its earnings report that although the market is weak, it still plans to complete a US$10 billion IPO fundraising plan, and said that the IPO may take place in 2024. The company also said it was exploring different ways to expand its shareholder base, but an IPO remained the "most popular option."

It is worth mentioning that Syngenta's listing process in China is quite tortuous. The company was first formally accepted by the Shanghai Stock Exchange for listing on the Science and Technology Innovation Board in July 2021. However, in mid-2023, Syngenta withdrew its application for the Science and Technology Innovation Board and "redirected" its main board listing. company said at the time:"Syngenta is more suitable for listing on the main board of the Shanghai Stock Exchange under the comprehensive registration system. It will also help reach more diversified investors and benefit the company's long-term value."

Financial results for the third quarter of last year showed that Syngenta's sales fell 13% to US$6.8 billion in the quarter, and profits fell sharply by 68% to US$300 million. Although Syngenta Group's global revenue declined in the first three quarters, the group's business in China still maintained growth. During the same period, China's operating income was US$7.7 billion, an increase of 9%. Syngenta's China business covers seeds, plant protection, crop nutrition, as well as MAP and digital agriculture.

Syngenta was acquired by Sinochem Group for US$43 billion in 2017 and will be merged into Sinochem Holdings in 2021. In the originally planned IPO, the company's prospectus stated that Sinochem Group would retain a majority stake in the business and the cash raised would be used to fund organic growth, research and development and acquisitions.

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