Syngenta Group to be listed on Shanghai Stock Exchange by June 2022 07-16-2021

On 21 June, Syngenta Group, a subsidiary of Sinochem Group Co., Ltd., stated on June 21 that it was planning to be listed on the Shanghai Stock Exchange (SSE) by June, 2022. When Syngenta Group is listed, its initial public offering (IPO) will become the largest in the agrochemical sector in history.

 

It is predicted that the company valuation of Syngenta will increase to USD 60 billion from USD 50 billion following this IPO. Last year, the annual income of Syngenta exceeded USD 23 billion.

According to Syngenta, the company has signed a tutoring agreement with China International Capital Corporation (CICC), BOC InternationalChinaCo.,Ltd. and CITIC Securities Company Ltd., and the company has also completed registration in the Shanghai Stock Exchange. The listing plan is still pending approval from the relevant authorities.


According to CBN, Syngenta is planning to be listed in Europe in the future. Syngenta started to operate in 2020, and it is the largest plant protection company and the third largest seed company in the world. Syngenta has hired approximately 4.9 thousand employees in around 100 countries. The four main business units of Syngenta include Syngenta Plant protection, Syngenta Seeds, Syngenta Group China and ADAMA. In 2018, Syngenta accounted for 7% market share in the Chinese crop chemical market.


Syngenta managed to prosper throughout the pandemic

According to the financial report of Syngenta in April, despite the effect of COVID-19, the company’s sales volume still increased to USD 23.1 billion, with profit increasing to USD 4 billion in 2020. The increase in the sales volume is mainly due to the increase in the price of agricultural commodities. Farmers invested more in fertilizers, seeds, and pesticides. Additionally, the company fared well during the pandemic and avoided supply chain disruption.


The revenue of Syngenta also saw an increasing trend during the first quarter of 2021. The revenue during the first quarter of 2021 was USD 42.8 billion, an increase of 10.8% compared to the same period in 2020. The EBITDA was USD 9 billion, an increase of 72.23% compared to the same period in 2020. According to Syngenta’s prospectus, Syngenta invested USD 9.2 billion during 2018, USD 9.5 billion during 2019, and USD 9.9 billion during 2020 in development and research, accounting for 6.65%, 6.59%, and 6.54% of the annual revenue during each respective year.


During these three years, the research and development staff accounted for 15.72%, 15.98% and 16.44% of all employees, respectively.


Syngenta plans to invest in USD 230 million in research and development

In February 2021, Syngenta announced a plan to invest USD 230 million in order to build a research and development center in Nanjing, in order to expand the Chinese pesticide market. Syngenta Group also stated that the center will mainly concentrate on agricultural biological products, digitization, and big data. Syngenta is also paying more attention to biological products, as well as disease and insect resistance. Syngenta acquired Valagro, a company which specializes in biological products, in 2020.


Fore more information in China’s pesticides market, please check our online resources. 


About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

Subscribe to our Newsletter

 


Next Press