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Source: Syngenta China official website
Introduction: Recently, the listing review platform of the Shanghai Stock Exchange showed that Syngenta Group's IPO application submitted on the main board of Shanghai was accepted, with a proposed financing amount of 65 billion yuan. This means that the largest A-share IPO in the past 13 years has officially shifted from the science and technology innovation board to the main board of the Shanghai market.
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The agricultural giant turned to listing on the main board of the Shanghai Stock Exchange
As an agricultural "giant", Syngenta Group's listing on the Science and Technology Innovation Board has always attracted market attention. On May 18, the review status of Syngenta's IPO on the STAR Board was updated to "termination", and the SSE also decided to terminate the review of Syngenta's initial public offering and listing on the STAR Board. Subsequently, the company issued an announcement that Syngenta Group decided to withdraw its application for listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange and submitted a listing application to the main board of the Shanghai Stock Exchange.
The company said that Syngenta Group, as the world's leading agricultural technology company, is better suited to the main board of the SSE, given that the main board of the SSE is mainly to support large companies with mature business models and stable earnings performance (blue chips are good representatives of their respective industries). The company decided to withdraw its listing on the Science and Technology Innovation Board and switch to the main board of the Shanghai Stock Exchange, so that it can reach more diversified investors and also benefit the company's long-term value.
In this regard, the relevant person in charge of the Shanghai Stock Exchange said that since the full implementation of the registration system, the multi-level capital market system has been further improved, and the positioning of the sector has become clearer. The SSE fully respects the independent choice of listed sectors by enterprises and supports the listing of large agricultural technology enterprises. After Syngenta Group submits its application for listing on the Shanghai Main Board, SSE will promote the smooth and orderly progress of the relevant work based on the preliminary review work.
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He planned to raise 65 billion yuan on the science and technology innovation board
According to the latest version of the prospectus, the IPO intends to raise 65 billion yuan, of which 13 billion yuan will be used for the expenses and reserves of cutting-edge agricultural science and technology research and development, 3.9 billion yuan will be used for the expansion, upgrading and maintenance of production assets and other capital expenditures, and 7.8 billion yuan will be used for agricultural "Big Macs" is coming! Syngenta Group then sought to go public on the expansion of the Modern Agricultural Technology Services Platform (MAP), with $20.8 billion for global M&A projects and the remaining $19.5 billion to repay the group's long-term debt.
According to public information, Syngenta Group was established in June 2020, formed by the integration of the agrochemical segment business of Sinochem Group and China National Chemical Group, mainly composed of the agricultural business of Swiss Syngenta, ADAMA and Sinochem Group, is the world's leading agricultural science and technology innovation enterprise, the main business covers plant protection, seeds, crop nutrition products research and development, production and sales, and engaged in modern agricultural services. Its listed companies also include Yangnong Chemical (600486. SH), Winall Hi-Tech (300087. SZ), Sinofert Holdings Co., Ltd. (00297. HK）。
The controlling shareholder of Syngenta Group is the agrochemical company, which is indirectly wholly owned by Sinochem through its wholly-owned subsidiary, ChemChina. The Group is now divided into four business units: Syngenta Crop Protection headquartered in Basel, Switzerland, Syngenta Seeds headquartered in Chicago, USA, ADAMA headquartered in Israel and Syngenta Group China. The business is mainly distributed in North America, Latin America, Europe, Africa and the Middle East, China and the Asia-Pacific region excluding China.
According to the prospectus, in 2021, Syngenta Group ranked first in the global crop protection industry and third in the seed industry, leading the way in the field of digital agriculture; In the Chinese market, Syngenta Group ranks first in the plant protection, seed and crop nutrition industries.
In terms of performance, the prospectus shows that from 2020 to 2022, Syngenta's operating income was 158.779 billion yuan, 181.751 billion yuan and 224.845 billion yuan, respectively, and the net profit attributable to the parent was 4.539 billion yuan, 4.284 billion yuan and 7.864 billion yuan, respectively.
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Industry commentary: Leveraging capital to promote agricultural innovation
Market analysts pointed out that the mainland's current multi-level capital market provides different channels for enterprises at different stages of development and different risk characteristics. After listing, the valuation system and investor base of different sectors also differ. For example, compared with the STAR Board, Main Board investors have a lower barrier to entry, so the number and types of investors are richer. In terms of overseas investors, the number of main board stocks in the Shanghai-Hong Kong Stock Connect has far exceeded that of the STAR Board. In addition, there are more active and passive index funds that invest in the main board. The switch to the Main Board listing will help Syngenta Group reach a larger and more diverse investor base.
At the same time, industry insiders believe that Syngenta can continue to develop more new technologies and services with the help of capital power, which is expected to promote the innovative development and modernization of mainland agriculture, and promote mainland agriculture to participate in international competition more comprehensively.
If Syngenta is successfully listed on the main board, it will undoubtedly become a new example of capital helping science and technology to rejuvenate agriculture, and also provide a new model for the virtuous cycle of "technology-industry-finance".
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