Syngenta Group has received approval from the Shanghai Stock Exchange for a $9.1 billion — about 65 billion Chinese yuan — Initial Public Offering, according to a posting on the exchange.
The company plans to use the money “to fund its research and development, upgrade its agricultural platform, support global acquisitions and repay long-term debts,” the South China Morning Post reported Friday, citing the Syngenta Group’s draft prospectus.
Asian economic publication Nikkei Asia reported that about $2.92 billion would go toward global acquisitions, $2.74 billion for debt repayments, and about $1.82 billion for research and development.
The company, which was bought by state-owned ChemChina in 2017 for $43 billion, withdrew an application for listing on the exchange’s STAR Market in May. The STAR market is focused on science and technology startups.
“Now that the main board of the Shanghai Stock Exchange is meant mainly to support large-scale companies with mature business models and stable earnings performance (blue chips which are good representatives of their respective industries), we believe Syngenta Group, as a leading global agricultural technology company, fits better on the main board of Shanghai Stock Exchange,” the company said May 18.
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“The initial public offering will be the fourth-biggest in mainland China after market debuts by the Agricultural Bank of China, PetroChina, and leading state-owned coal miner China Shenhua Energy,” according to Asian economic publication Nikkei Asia.
“This main board listing will enable Syngenta Group to access more diversified investors and will be conducive for the company’s long-term value,” Syngenta said in May.
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