ZURICH HONG KONG Syngenta's $9.5 billion flotation moved a step closer after the Shanghai Stock Exchange scheduled a hearing next week for the Swiss agrichemicals and seeds company's listing plan.
Syngenta, a rival to U.S. company Corteva and German firms BASF and Bayer, was bought in 2017 by ChemChina for $43 billion and merged with Sinochem Holdings Corp in 2021.
The Chinese parent plans to keep a majority stake after the initial public offering IPO which is set to be one of the world's biggest this year and expected to value Syngenta at around $50 billion.
The Shanghai Stock Exchange is expected to conduct a hearing on Wednesday with the company to examine its listing application on March 29. Syngenta has updated its prospectus with its latest financial figures.
A total of 60 per cent of the proceeds will be used to finance acquisitions and to repay debt.
Around 20 percent of the money will be allocated to research and development related to agricultural technology, according to the prospectus.
After Syngenta passes the hearing, the IPO will still need registration with the China Securities Regulatory Commission.
Sources said the company is aiming to launch the offering in June, with one saying that it is looking for mainly Chinese investors as strategic shareholders.
The float will likely be the biggest four-year old STAR board, providing a major boost after the scrapping of Ant Group's 2020 blockbuster listing.
The Nasdaq-style STAR Market topped the global charts for IPO fundraising in 2022, having raised $28.5 billion, according to Refinitiv Eikon data.
Syngenta first submitted its listing application in July 2021 and went through three rounds of reviews with the Shanghai bourse.
The company reported its highest annual sales and earnings on Wednesday. Its 2022 earnings before interest, tax, depreciation and amortization EBITDA increased 20 per cent to $5.6 billion on sales up 19 per cent to $33.4 billion.
The company added 136 more Modern Agricultural Platform centres that offer training to farmers and sell its seeds and pesticides, taking its total to 628 from China.
All business units saw double-digit growth, benefiting from high demand for products and services designed to promote yield increases and sustainable farming methods, Syngenta said.
Its earnings fell during the fourth quarter after being hit by higher raw materials costs. It also set aside cash to cover macroeconomic uncertainties, as well as reorganising its business.
Its EBITDA fell 25 per cent to $900 million on sales, up 4 per cent to $7.5 billion, driven by its seeds business.
The farmers accelerated their purchases earlier in the year due to supply concerns, causing moderate fourth quarter growth, the company said.