Syngenta to withdraw China IPO application on weak market: sources

SYNGENTA Group is planning to withdraw its application for a stock-market listing in Shanghai, according to people familiar with the matter.

The Chinese-owned seed and pesticide giant may announce the decision soon, the people said, asking not to be identified discussing private information. The move would allow Syngenta to keep building the business and talk to investors privately, the people said.

The company may revive the initial public offering (IPO) at a later date if market conditions improve, the people added. Syngenta did not immediately respond to an e-mailed request for comment.

The company first filed for an IPO in China’s financial hub in 2021, but its listing has been snagged by various issues. The most recent delay came in November, when the company said it would postpone its IPO until the end of 2024 because of volatile markets. That float would have raised 65 billion yuan (S$12.1 billion). It also said it would explore alternative options for expanding its shareholder base.

Chinese equity markets, meanwhile, have foundered in recent months as the economy has slowed. The benchmark CSI 300 Index hit a five-year low in early February.

The Swiss company was bought by China National Chemical, or ChemChina, in 2017 for US$43 billion, a record-breaking overseas acquisition for the country, and one that spoke to Beijing’s growing concerns around food security. Syngenta’s products, including genetically modified seeds, are important building blocks for improving the quality and quantity of China’s agricultural production.

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ChemChina has since been absorbed into Sinochem Holdings. BLOOMBERG