Syngenta, based in Switzerland, was founded in 2000 as a result of the Novartis Agribusiness and Zeneca Agrochemicals merger. The company is focusing on the production of agrochemicals and seeds, while it also works in biotechnology and performs genome change studies and produces genetically modified crops. Over 27,000 company's employees work in 90 countries.
Syngenta has eight main product lines that are sold worldwide. The five pillars of agricultural chemistry are selective herbicides, indiscriminate herbicides, fungicides, insecticides, and seed protection products. Seed products include soybeans, corn and other field crops. According to stats, agrochemical sales yield around 75% of the company's total sales.
Syngenta shares are already listed in stock exchanges. In 2017, the company was acquired by ChemChina, a Chinese national chemical corporation. The acquisition amounted to $43B, which is considered one of the largest deals ever made by Chinese companies abroad. Syngenta is not directly controlled by ChemChina and operates as before, but the Chinese company owns 98% of its shares.
According to the financial report, the company's sales in 2019 exceeded $13B, over $10B billion being agrochemical sales, and more than $3, seed products. The company's sales and net profit have been around the same over the last few years.
After the acquisition of Syngenta by the Chinese ChemChina, the company's shares were delisted from the US and Swiss exchanges. When the deal was over, ChemChina said it planned to launch an IPO for Syngenta within a few years, probably in 2022.
Syngenta's CFO said in an interview with Bloomberg that preparations for Syngenta's IPO had already started, and the IPO itself should take place by 2022. The company is planning to launch its IPO under the most favorable market conditions.
The analysts say the global agrochemicals market was worth $215.18B in 2016. According to some forecasts, it may reach $308.92B by 2025 and grow by 4.10%, annually.
When it comes to the seed market, it was worth $59.30B in 2020. The analysts say it may rise by 6.40% per year and reach $80.90B by 2025.
Working in emerging markets and producing highly sought-after products opens up great opportunities for those who will take part in Syngenta IPO.
