Exclusive-Syngenta IPO aims for valuation of at least $66 billion, sources say

By John Revill and Oliver Hirt

ZURICH, Oct 27 (Reuters) - Syngenta's advisers are targeting a valuation of at least $66 billion in the Swiss-Chinese agrochemicals group's planned Hong Kong listing, which is likely to take place early next year, two people familiar with the matter told Reuters.

UBS and China International Capital Corp (CICC) are marketing the Basel-based maker of seeds and crop-protection products at 15 to 20 times expected 2026 core earnings (EBITDA), the sources said.

That would value Syngenta, which is controlled by Chinese state-owned firm Sinochem, at $66 billion to $88 billion, based on its 2025 EBITDA of $4.4 billion, placing the offering among the largest global IPOs expected next year.

The valuation reflects Syngenta's efforts to position itself more as a biotechnology company than a chemicals producer, the sources said. One of them added that a strong product line-up in crop protection and development pipeline for new seed varieties resistant to disease and pests supported a high valuation.

China CITIC Bank and Bank of America are also helping run the IPO. Syngenta and UBS declined to comment. CICC, China CITIC Bank and Bank of America did not immediately respond to requests.

JANUARY WINDOW

Three sources said the IPO could still take place before the end of 2026, but an early-2027 debut was considered more likely.

"There's confidence a January window is feasible," said one.

The bankers are meeting investors in Shanghai, Hong Kong and Beijing ahead of planned marketing in Frankfurt and London.

Some Asian investors are also showing renewed interest in more traditional industrial companies as enthusiasm for artificial intelligence-related stocks cools, the sources added.

Syngenta, which Sinochem acquired for $43 billion in 2017, plans to sell a stake of 10% to 20% and use the proceeds to reduce debt and invest in crop-protection products and seeds.

The company has already filed for the flotation which could raise $5 billion to $10 billion.

Hong Kong's IPO market is booming, with 118 newly listed companies raising HK$388.0 billion ($49.5 billion) in the first nine months of 2026, up 106% from a year earlier, according to HKEX data.

Sentiment weakened this month, however, after a selloff in AI-related stocks raised concerns over valuations and returns on AI spending. Changzhou Microintelligence and Jiangsu Slender West Lake Culture and Tourism postponed their offerings, citing market conditions.

Syngenta's IPO would revive Sinochem's efforts to take the company public after it withdrew a proposed Shanghai listing in 2024.

Syngenta competes with BASF, Bayer and Corteva, and recently appointed as CEO Hengde Qin, a Chinese national seen as someone who can navigate the various approval processes.

The company sells seeds, herbicides, insecticides and fungicides, alongside biological and digital farming products. It has more than 50,000 employees in over 90 countries, according to its website.

(Reporting by John Revill and Oliver Hirt, additional reporting by Yantoultra Ngui in Hong Kong. Editing by Dave Graham and Mark Potter)