SWISS agrochemicals company Syngenta said on Thursday (Nov 9) that it was still planning to complete its US$10 billion flotation, but indicated weak financial markets made it more likely it will take place next year.

The Chinese-owned company said it was also exploring “alternative methods” to expand its shareholder base as the seeds and pesticides maker seeks to raise cash to fund organic growth and pay down debt.

The company spokesperson said that given weak market conditions, the organisation is expected to go public by the end of next year.

“We will also remain flexible in our approach and explore alternative methods to expanding our shareholder base,” he added.

The initial public offering (IPO) update came as Syngenta, which competes with US company Corteva and German companies BASF and Bayer, reported its Q3 earnings.

Sales in the three months to the end of September fell 13 per cent to US$6.8 billion, while earnings before interest, tax, depreciation and amortisation plunged 68 per cent to US$300 million.

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Earnings were hit by weak demand in Brazil, one of Syngenta’s biggest markets, where it also wrote down the value of part of its inventory.

The IPO remained the favoured option, the spokesperson said, declining to comment on possible alternatives such as a private placement of shares.

Syngenta, which recently announced a change of chief executive and chief financial officer, has been pursuing an IPO for nearly two and half years.

Its application passed a review by the listing committee of the Shanghai Stock Exchange in June, but still needs approval from China’s securities regulator.

Syngenta was bought by ChemChina in 2017 for US$43 billion and folded into Sinochem Holdings, which was formed in 2021 through the merger of ChemChina and Sinochem Group.

The Chinese parent is pursuing a flotation that is expected to give Syngenta an enterprise value of about US$60 billion.

Sinochem Holdings is expected to keep a majority stake in the business, with cash raised going towards funding organic growth, research and development, and acquisitions. REUTERS