Syngenta shifts IPO application to Shanghai exchange’s main board from Star Market, indicating revival of US$9.3 billion stock sale
- Listing on the main board will enable Syngenta to access more diversified investors and will be conducive for the company’s long-term value, agrichemical giant says
- The Shanghai exchange had abruptly called off a scheduled listing meeting with the company in March
The decision was made because the implementation of a market-based IPO registration system has redefined the roles of the different boards on the exchange, Syngenta said in a press release on Thursday. The Shanghai exchange’s main board suits established companies with mature business models and solid earnings, it said.
“We believe Syngenta Group, as a leading global agricultural technology company, fits better on the main board of the Shanghai Stock Exchange, under its latest registration-based IPO scheme,” the company said. “This main board listing will enable Syngenta Group to access more diversified investors and will be conducive for the company’s long-term value.”
The announcement indicates that Syngenta will probably revive its 65 billion yuan (US$9.3 billion) IPO, which was suddenly put on hold by the Shanghai exchange just a day before a scheduled listing meeting in March.
The bourse did not give a detailed explanation as to why it cancelled the meeting, spurring speculation that the IPO was too big for the market to digest and could siphon off too much capital from existing equities by causing a glut of new stock supply.
