Syngenta targets valuation of at least US$66 billion in Hong Kong IPO

ZURICH: Syngenta's advisers are targeting a valuation of at least US$66 billion in the Swiss-Chinese agrochemicals group's planned Hong Kong listing, which is likely to take place early next year, two people familiar with the matter told Reuters.

UBS and China International Capital Corp (CICC), two of Syngenta's IPO sponsor banks, are marketing the Basel-based maker of seeds and crop-protection products at 15 to 20 times expected 2026 core earnings (EBITDA), the people said.

That would value Syngenta, which is controlled by Chinese state-owned firm Sinochem, at US$66 billion to US$88 billion, based on its 2025 EBITDA of US$4.4 billion, placing the offering among the largest global IPOs expected next year.

The valuation reflects Syngenta's efforts to position itself more as a biotechnology company than as a chemicals producer, the people said. One of them added that a strong product lineup in crop protection and a development pipeline for new seed varieties resistant to disease and pests supported a high valuation.

China CITIC Bank and Bank of America are also sponsors of the IPO, said a separate source with knowledge of the offering.

Syngenta and UBS declined to comment. CICC, China CITIC Bank and Bank of America did not respond to requests for comment.

JANUARY WINDOW

Three people said the IPO could still take place before the end of 2026, but an early-2027 debut was considered more likely.

"There's confidence a January window is feasible," said one.

The bankers are meeting investors in Shanghai, Hong Kong and Beijing ahead of planned marketing in Frankfurt and London.

Some Asian investors are also showing renewed interest in more traditional industrial companies as enthusiasm for AI-related stocks cools, the people added.

Syngenta plans to sell a stake of 10 per cent to 20 per cent and use the proceeds to reduce debt and invest in crop-protection products and seeds.

The company has already filed for the flotation, which could raise US$5 billion to US$10 billion.

Hong Kong's IPO market is booming, with 118 newly listed companies raising HKUS$388.0 billion (US$49.5 billion) in the first nine months of 2026, up 106 per cent from a year earlier, according to HKEX data.

Sentiment weakened this month, however, after a selloff in AI-related stocks raised concerns over valuations and returns on AI spending. Changzhou Microintelligence and Jiangsu Slender West Lake Culture and Tourism postponed their offerings, citing market conditions.

ChemChina Group acquired Syngenta for US$43 billion in 2017 in what is China's largest foreign takeover to date, before the group itself was merged into Sinochem in 2021 to create the world's biggest industrial chemicals company.

Syngenta's IPO would revive Sinochem's efforts to take the company public after it withdrew a proposed Shanghai listing in 2024.

Syngenta competes with BASF, Bayer and Corteva, and recently appointed as CEO Hengde Qin, a Chinese national seen as someone who can navigate the various approval processes.

The company sells seeds, herbicides, insecticides and fungicides, alongside biological and digital farming products. It has more than 50,000 employees in over 90 countries, according to its website.