Agrochemicals group Syngenta indicates $10 bln IPO likely next year

ZURICH, Nov 9 (Reuters) – Swiss agrochemicals company Syngenta said on Thursday it was still planning to complete its $10 billion flotation, but indicated weak financial markets made it more likely it will take place next year.

The Chinese-owned company said it was also exploring “alternative methods” to expand its shareholder base as the seeds and pesticides maker seeks to raise cash to fund organic growth and pay down debt.

“Given weak market conditions we expect that the company will IPO by the end of next year,” a company spokesman said on Thursday after Syngenta reported its Q3 earnings.

“We will also remain flexible in our approach and explore alternative methods to expanding our shareholder base,” he said.

The IPO update came as Syngenta, which competes with U.S. company Corteva (CTVA.N) and German firms BASF (BASFn.DE) and Bayer (BAYGn.DE), reported its latest earnings.

Sales in the three months to the end of September fell 13% to $6.8 billion, while earnings before interest, tax, depreciation and amortisation plunged 68% to $300 million.

Earnings were hit by weak demand in Brazil, one of Syngenta’s biggest markets, where it also wrote down the value of part of its inventory.

The IPO remained the favoured option, the spokesman said, declining to comment on possible alternatives such as a private placement of shares.

Syngenta, which recently announced a change of chief executive and chief financial officer, has been pursuing an IPO for nearly two and half years.

Its application passed a review by the listing committee of the Shanghai Stock Exchange in June, but still needs approval from China’s securities regulator.

Syngenta was bought by ChemChina in 2017 for $43 billion and folded it into Sinochem Holdings Corp in 2021.

The Chinese parent is pursuing a flotation that is expected to give the company an enterprise value of about $60 billion.

Sinochem is expected to keep a majority stake in the business, with cash raised going towards funding organic growth, research and development, and acquisitions.

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