Syngenta Seeks to Lure Mideast Funds to $9 Billion IPO - Bloomberg

Syngenta Seeks to Lure Mideast Funds to $9 Billion IPO - Bloomberg

Syngenta Group has approached a number of Middle Eastern sovereign funds as it seeks cornerstone investors for its 65 billion yuan ($9 billion) initial public offering, people with knowledge of the matter said.

Advisers for the Chinese-owned seed giant have held preliminary talks with funds including the Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund about committing to buy stock in the Shanghai IPO, the people said.

Sovereign funds from oil-rich Persian Gulf countries have been ramping up their global deal activity at a time when rising interest rates and risk aversion are keeping some other major investors on the sidelines.

Closer political ties between China and the Middle East are also encouraging the flow of capital into Asia’s biggest economy. TikTok owner ByteDance Ltd. was valued at around $220 billion in a recent investment by Abu Dhabi AI firm G42, controlled by United Arab Emirates royal Sheikh Tahnoon bin Zayed Al Nahyan, Bloomberg News reported in March. The private equity owners of McDonald’s Corp.’s operations in China are approaching firms including Abu Dhabi sovereign wealth fund Mubadala Investment Co. for a $4 billion stake sale, people familiar with the matter have said.

Deliberations are still at an early stage, and it’s unclear which funds will ultimately decide to participate in the Syngenta offering, the people said. Representatives for ADIA, PIF and Syngenta declined to comment.