BRIEF: Syngenta explores Hong Kong IPO to raise up to $10 billion

Agricultural and chemical giant Syngenta Group is planning a Hong Kong IPO this year that could raise up to $10 billion, in what could become the Hong Kong Stock Exchange’s largest listing since e-commerce giant Alibaba raised $11.2 billion in 2019.

Syngenta is in talks with several potential underwriters for the deal, including Goldman Sachs, CICC, Morgan Stanley and HSBC, Reuters reported on Thursday, citing unnamed sources familiar with the situation. They added Syngenta would like to complete the deal this year, and aims to raise between $5 billion and $10 billion.

Syngenta is based in Switzerland, but was acquired by China National Chemical Corp., or ChemChina, for $43 billion in 2017. The company is currently owned by Sinochem Holdings, which was formed through the 2021 merger of ChemChina and Sinochem Group.

The Hong Kong listing would be partly aimed at diluting Syngenta’s Chinese ownership in response to growing political sensitivities, according to the Reuters report. Funds from the IPO would also be used to pay down Syngenta’s debt, which stood at $24.8 billion at the end of 2024.

Syngenta was previously preparing a similar-sized IPO on the Shanghai Stock Exchange as early as 2021, but later cancelled the plan, citing market volatility. The shift to Hong Kong comes as China prioritizes emerging technology companies for IPOs on its domestic stock markets in Shanghai and Shenzhen. Meantime, the more internationally focused Hong Kong is experiencing one of its strongest IPO markets in years, winning it the crown for the world’s biggest IPO market last year based on funds raised.

Last year’s biggest IPO came from CATL, the world’s largest electric vehicle battery maker, which raised about $4.6 billion. Before that, the Hong Kong Stock Exchange’s largest listing in recent years came from short video site Kuaishou, which raised $5.4 billion in 2021.

By Doug Young

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