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 International（China）Co.,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.
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