Syngenta is preparing for listing or the largest IPO in the chemical industry

According to people familiar with the matter, Sinochem Group has begun to speed up preparations for the listing of Syngenta, and its IPO size may set a record for the chemical industry. Syngenta, a Swiss pesticide manufacturer, was acquired by China Chemical Group for $43 billion a few years ago. According to people familiar with the matter,

executives have begun internal preparations for listing as early as mid-2020, and Syngenta is in talks with investment banks seeking to play a role in the IPO transaction. As the information was not disclosed, people familiar with the matter asked for anonymity. A person familiar with the matter disclosed that Syngenta may seek to list in Europe, preferring Europe to other locations such as Hong Kong or New York. In a statement in response to Bloomberg's inquiry, Mark Patrick, Chief Financial Officer of Syngenta, said that with the expectation of an IPO before 2022, it is natural that planning has begun to prepare for an IPO when the market is favorable and we can demonstrate strong performance to ensure a good valuation.

The above-mentioned people said that the final decision has not yet been made and the IPO plan may still be postponed. People familiar with the matter said that the timing of the IPO transaction may be affected by the Chinese government's merger plan between Sinochem Group, a Chinese chemical group, and Sinochem Group, a state-owned competitor.

Although Syngenta has not yet set specific financing targets, major European exchanges usually require listed companies to sell 20-25% of their equity to the public. Based on this figure, Syngenta will easily surpass the $4.8 billion IPO raised by Petronas Chemicals Group Bhd, the largest chemical industry to date in 2010.