Beijing, 30 March 2024 (TDI): Syngenta, a Swiss agrichemicals and seeds group, has opted to withdraw its multi-billion-dollar IPO bid on the Shanghai Stock Exchange amidst recent turbulence in the Chinese equity market.
The proposed IPO, valuing Syngenta at up to $60 billion, faced delays due to unfavorable market conditions. This has happened since its inception in 2021.
Syngenta Group’s decision to retract its IPO application aligns with its strategic considerations and market evaluation. This has been stated by the company on Friday.
In addition to this, market experts attribute the postponement of the IPO too. They do this with other recent offerings, due to subdued market conditions in China.
Syngenta refrained from disclosing detailed reasons for the withdrawal. Additionally, it also expressed intentions to revisit the listing process at a more opportune time or explore alternative funding avenues.
Analysts suggest potential listing destinations such as Hong Kong, Zurich, and London for Syngenta’s future IPO endeavors.
China’s IPO market has experienced a downturn, marked by a significant decrease in fundraising compared to previous years, reflecting broader market challenges.
Since the business originally applied for a listing in 2021, the IPO, which had the potential to raise 65 billion yuan (US$9 billion), has been repeatedly delayed owing to unstable market circumstances. The business said in November that it would postpone listing until the end of 2024, the most recent postponement.
The cancellation occurs amid a calm initial public offering (IPO) market in China, where the newly appointed head of the securities regulator has promised to increase the bar for firms looking to list and to scrutinize applications more thoroughly to improve the caliber of new listings.
The termination of Syngenta’s IPO review by the Shanghai Exchange follows a period of uncertainty. This ambiguity lies in key markets like Brazil, impacting the company’s financial performance.
Syngenta reported a decline in sales and earnings last year, signaling challenges in navigating global market dynamics.
The company’s strategic retreat from the IPO reflects evolving market sentiments and emphasizes the importance of strategic timing in capital market initiatives.
