Syngenta's IPO goes back on hold

As a leading giant in agrochemical across the globe, Syngenta GroupCo., Ltd (Syngenta) caught great attention from the market for its IPO onScience and Technology Innovation Board in China A share. Previously, Syngentawas expected to have the IPO review on 29 March, 2023, but Shanghai StockExchange has canceled a hearing to review its IPO on 28 March, 2023.

As for the cancellation of Syngenta’s listing, securities professionalsaid it was likely to be temporarily pulled to keep financial markets stable.

According to the statistics from Oriental Wealth, if Syngenta cansucceed in being listed in China’s A-share market, it will be the largest IPOin China’s stock market since 2010. The amount raised by Syngenta will reachUSD9.5 billion, ranking the fourth in the history of the A-share market interms of the amount raised for the first time after Agricultural Bank of China,Sinopec Corp and China Shenhua.

It is reported that China is still exploring the comprehensiveregistration system of China’s A-shares, and purchase application has beenkicked off for the first batch of new shares registered on the main board.Syngenta’s fundraising of USD9.5 billion exerts large impacts on domestic stockmarket, which may cause insufficient willingness to apply for purchase from theinvestors. Therefore, it is possible that the securities regulator canceledSyngenta’s IPO application to stabilize the market.

As of 28 March 2023, the company declined to commenton the reasons for IPO cancellation.