Swiss agrichem giant Syngenta starts ‘tutoring’ process with banks ahead of Shanghai IPO

A Syngenta logo is pictured in their office in Singapore, February 12, 2016. REUTERS/Edgar Su/File Photo

Swiss agrichemical giant Syngenta Group said on Monday it had begun the so-called “tutoring” process with banks ahead of a planned initial public offering (IPO) on Shanghai’s STAR Market, indicating a float may occur before its June 2022 target.

The investment banks involved in the process – which is unique to China, and sees bankers coach company executives on IPO-related issues – are China International Capital Corp, Bank of China unit BOCI, and Citic Securities, Syngenta said in a statement.

Sources told Reuters the IPO would value Syngenta at around $60 billion including debt, or $50 billion without.

A spokesperson for Syngenta, which is owned by ChemChina and recorded $23.1 billion in sales last year, said the firm plans to complete the IPO by the end of the first half of 2022. However, the filing of the tutoring documents indicates the float may be earlier than that, the spokesperson added.

In its statement, Syngenta described filing the tutoring documents as a “preparatory step towards a possible initial public offering” on the STAR, or Science and Technology Innovation Board of the Shanghai Stock Exchange.

An actual listing application “would require a formal submission and be subject to approvals from relevant regulators”, it added.

The China Securities Regulatory Commission published the pre-listing tutoring report on its website on Monday.

State-owned ChemChina, which bought Syngenta for $43 billion in 2017, last year merged the Swiss firm with Israel’s ADAMA and the fertiliser and seed business of Sinochem.

A long planned merger of ChemChina and Sinochem was approved by China’s state assets regulator in March.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.