The largest IPO so far on the Science and Technology Innovation Board is here, and it became the focus of the audience as soon as it was unveiled. Syngenta Group Co., Ltd. (hereinafter referred to as "Syngenta") submitted its IPO application draft on the evening of July 2, and plans to raise 65 billion yuan, exceeding the funds raised by SMIC (688981.SH), which was listed in July last year. 53.2 billion yuan, setting a new record for funds raised by companies on the Science and Technology Innovation Board.
At the same time, the market value is estimated to exceed 300 billion yuan, far exceeding Kingsoft Office (688111.SH), which currently has the highest market value on the Science and Technology Innovation Board. The latter has a market value of 178 billion yuan, also exceeding A shares and H shares. The total market value of SMIC’s shares listed in both places. This means that Syngenta is likely to become the "new brother" in terms of market value on the Science and Technology Innovation Board.
Syngenta's official website
Set a record for overseas mergers and acquisitions by Chinese companies
Syngenta is the world's largest agricultural technology company. Swiss Syngenta It has a long history, which can be traced back to 1758 and has a history of more than 200 years. In 2017, it was acquired by China National Chemical Corporation for a sky-high price of US$43 billion. This price also set a record for overseas mergers and acquisitions by Chinese companies.
The new Syngenta Group was registered in Shanghai in 2019. It is mainly composed of Swiss Syngenta, Israel's ADAMA and Sinochem Group's agricultural business. The company's main production and operation address is still in Basel, Switzerland. As of the end of 2020, Syngenta Group has 359 subsidiaries all over the world. ADAMA also has a history of more than 70 years. It originated from two Israeli crop protection companies that merged in 1997 and were acquired by China National Chemical Corporation in 2011.
In addition to Syngenta, global agrochemical giants also include Bayer, Monsanto, DuPont, Dow, BASF, etc. In 2015, the global agrochemical industry hit a trough, and agrochemical giants gathered together to keep warm after their performance plummeted. In 2016, Monsanto tried to acquire Syngenta many times but failed, and was acquired by Bayer instead; Syngenta was subsequently acquired by ChemChina.
As the world's leading agricultural science and technology innovation enterprise, Syngenta's main business covers the research and development, production and sales of plant protection, seeds, and crop nutrition products, and is engaged in modern agricultural services. Red Star Capital Bureau found from the prospectus that the company ranked first in the global plant protection industry, third in the seed industry, and a leader in the field of digital agriculture in 2020; it ranked first in China's plant protection industry, second in the seed industry, and second in the crop nutrition industry. Ranked number one.
The prospectus disclosed that Syngenta consists of four business units: Syngenta Crop Protection, Syngenta Seeds, Syngenta Group China and ADAMA. Among them, Syngenta Crop Protection is the world's leading provider of patented crop protection products and has world-class new compound creation capabilities. In 2020, Syngenta's crop protection business revenue exceeded 100 billion yuan. ADAMA is the world's largest provider of generic plant protection products and has leading capabilities in compounding generic compound formulations. Syngenta Seed has leading biological breeding technology and R&D capabilities, and has developed more than 6,000 seed products with independent intellectual property rights in more than 400 product lines.
Average annual revenue exceeds 100 billion, and R&D investment reaches nearly 10 billion
On May 13 this year, Syngenta signed listing guidance agreements with CICC, BOC Securities and CITIC Securities respectively. Agreement, start listing counseling. On June 30, the Shanghai Stock Exchange accepted Syngenta's IPO application. On July 2, Syngenta disclosed its prospectus. This also means that it only took Syngenta just 49 days from the signing of the mentoring agreement to the acceptance of the IPO application, reflecting the extremely high efficiency of the Science and Technology Innovation Board IPO.
Syngenta’s financial data is excellent. The financial report shows that from 2018 to 2020, its operating income exceeded 100 billion yuan, which was 139.695 billion yuan, 144.566 billion yuan, and 151.96 billion yuan respectively, which is a huge amount. No tyrant level; net profits attributable to parent companies were -4.048 billion yuan, -2.206 billion yuan, and 4.424 billion yuan respectively. The company continued to maintain strong growth momentum in the first quarter of 2021. The operating income in the first quarter was 42.837 billion yuan, a year-on-year increase of 10.80%; the net profit was 4.544 billion yuan, a year-on-year increase of 44.91%.
Syngenta’s main financial data
This time, Syngenta’s capital raising plans to invest in the expenses and reserves of cutting-edge agricultural technology research and development, the expansion, upgrading and maintenance of production assets, and other capital expenditures , expand modern agricultural technology service platform (MAP), Yangnong Chemical and Valagro global mergers and acquisitions projects, and repay long-term debt.
Currently, China National Agricultural Chemical Co., Ltd. (hereinafter referred to as the "Agrichemical Company") directly holds 99.1% of the shares of Syngenta Group and is the group's controlling shareholder; at the same time, the Agrichemical Company's wholly-owned subsidiary Mai Daonong Chemical holds 0.9% of the shares of Syngenta Group. The actual controller of the agrochemical company is the State-owned Assets Supervision and Administration Commission of the State Council. On March 31 this year, with the approval of the State Council, Sinochem Group and ChemChina implemented a joint reorganization. Sinochem Group and ChemChina were integrated into the new company "Sinochem". At present, the joint reorganization work is still in progress. After the reorganization is completed, Sinochem will become the indirect controlling shareholder of Syngenta.
Syngenta Group also directly or indirectly participates in the assets of a number of listed companies, including Yangnong Chemical (600486.SH), ADAMA (000553.SZ), Tsuen Yin Hi-Tech (300087.SZ), China Chemical fertilizers (00297.HK), etc.
As a company planning to be listed on the Science and Technology Innovation Board, Syngenta has strong "tech innovation" characteristics: the company employs more than 7,000 R&D personnel and has an industry-leading R&D platform. From 2018 to 2020, the company's R&D The total investment was as high as 9.291 billion yuan, 9.534 billion yuan and 9.944 billion yuan respectively. According to preliminary statistics from the Red Star Capital Bureau, its R&D investment has exceeded that of BeiGene (06160.HK), which has passed the Science and Technology Innovation Board. The latter's total R&D investment in 2020 is about 8.3 billion yuan. Syngenta is likely to become a new player on the Science and Technology Innovation Board. The "R&D No. 1 Brother".
Editor Yang Cheng
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