ZURICH\/HONG KONG (Reuters) -Swiss agrichemicals and seeds group Syngenta has withdrawn its application to float on Shanghai’s tech-focused STAR Market and will instead seek a listing on the main board of the Shanghai Stock Exchange, the company said on Thursday.<\/p>\n\n\n\n
Syngenta is seeking to rescue its 65-billion-yuan ($9.4-billion) IPO, which hit the buffers after the Shanghai bourse canceled a hearing without providing a reason in late March.<\/p>\n\n\n\n
“Syngenta Group has withdrawn its STAR Market IPO application and will immediately apply for a public listing on the main board at the Shanghai Stock Exchange,” the Chinese-owned company said in a statement.<\/p>\n\n\n\n
It said it decided to switch focus following China’s recent listing rule changes to more clearly define the roles of different boards.<\/p>\n\n\n\n
“We believe Syngenta Group … fits better on the main board,” the company said.<\/p>\n\n\n\n
The change was in line with a decision that the main board was meant to support large-scale companies with mature business models and stable earnings performance, it added.<\/p>\n\n\n\n
China’s securities watchdog has since February implemented new rules to broaden the registration-based IPO system to the main boards in Shanghai and Shenzhen, homes to many Chinese blue chips, part of efforts to reform the world’s second-biggest stock market.<\/p>\n\n\n\n
The new IPO system, designed to simplify listing requirements and improve registration and vetting procedures, was first adopted by the STAR Market and later rolled out to start-up board ChiNext and the Beijing Stock Exchange.<\/p>\n\n\n\n
Key to the changes is the so-called registration system, which replaces the previous approval-based IPO system for the main boards in the Shanghai and Shenzhen stock markets, under which companies had to go through strict vetting process by the securities regulator.<\/p>\n\n\n\n
Under the new system, stock exchanges are responsible for vetting IPOs with a focus on information disclosure, while the regulator only makes sure listings are in line with national industrial policy.<\/p>\n\n\n\n
The Shanghai Stock Exchange said in a statement it fully respected Syngenta’s “independent choice of listing boards and support the listing of large agricultural technology companies”.<\/p>\n\n\n\n
The bourse said it would push forward with work on Syngenta’s IPO in a “steady and orderly” way after it submits its application for the main board listing.<\/p>\n\n\n\n
The new listing mechanism also sets no administrative restrictions on the issuance price and size of new shares.<\/p>\n\n\n\n
“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 company said.<\/p>\n\n\n\n
A rival of U.S. company\u00a0Corteva\u00a0(NYSE:CTVA) and German firms BASF and Bayer (OTC:BAYRY), Syngenta was bought for $43 billion by ChemChina in 2017 and folded into Sinochem Holdings Corp in 2021.<\/p>\n\n\n\n
The company reported its highest ever annual sales and earnings for 2022, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 20%, at $5.6 billion.<\/p>\n\n\n\n
The Chinese parent plans to keep a majority stake after the IPO, which is set to be one of the world’s biggest this year and is expected to give Syngenta an enterprise value of about $60 billion.<\/p>\n