Syngenta’s $5 Billion Hong Kong IPO Is Said to Face Fresh Delays

Syngenta Group’s planned $5 billion Hong Kong initial public offering is facing delays as the seed and pesticide company waits for better conditions in the agriculture sector, according to people familiar with the matter.

(Bloomberg) — Syngenta Group’s planned $5 billion Hong Kong initial public offering is facing delays as the seed and pesticide company waits for better conditions in the agriculture sector, according to people familiar with the matter. A listing in 2027 is now seen as the more likely timeline, the people said, asking not to be identified because the information is private. The Chinese-owned company was previously targeting to submit a listing application in June with the hopes of listing some time this year, the people said.

It’s now planning to wait until September or later to file the listing documents, probably pushing the offering into next year, according to the people. Crop and fertilizer markets have been impacted by the Iran war and the closure of the Strait of Hormuz, which choked off supplies of key nutrients including urea. That sent prices soaring and left farmers scrambling for alternatives.

Fresh tensions in the Middle East may threaten prolonged supply disruptions, with experts warning that energy prices remain elevated and fertilizer markets are vulnerable to renewed flare-ups. In addition to the challenges faced by the agricultural sector, the company may take longer to get approvals for the listing and may need to seek additional signoffs given it operates in the agricultural seed business, which is seen as a particularly sensitive industry, some of the people said. Deliberations are ongoing and details of the timeline could still change, the people said.

A spokesperson for Syngenta said the company will continue to assess capital markets strategies based on market conditions and other factors, adding that the firm intends to return to the capital market when the timing is right, and declined to comment further. Representatives for the China Securities Regulatory Commission and the Ministry of Agriculture and Rural Affairs didn’t immediately respond to requests seeking comment. Meanwhile, Syngenta is going through some leadership changes.

Earlier this month, it announced that Chief Executive Officer Jeff Rowe — who’s seen as one of the biggest proponents of the IPO — would be stepping down as CEO in August. He’ll be replaced by Hengde Qin, who was Sygenta’s chief financial officer before becoming its chief operating officer in March. An IPO of Syngenta could rank among the largest in recent years in Hong Kong, where first-time share sales are booming.

Almost $35 billion has been raised in first-time share sales this year already, according to data compiled by Bloomberg. Syngenta had filed for an IPO in Shanghai in 2021 but pulled its application in March 2024, citing volatile markets. The company is based in Switzerland but was acquired by China National Chemical Corp., or ChemChina, in 2017.

It makes crop protection products including herbicides, insecticides and fungicides, and also develops seed varieties for crops such as corn, soybean, sunflowers, cereals and vegetable seeds. ChemChina was later absorbed into Sinochem Holdings Corp. —With assistance from Zheng Wu, Zhang Dingmin and Hallie Gu.