BASF SE has invited banks to pitch for roles on an initial public offering of its agrichemical division in Frankfurt, in what could be one of the largest offerings the bourse has seen in recent years. The German chemical giant is preparing to spin off its agricultural solutions unit, which includes seeds, traits, and crop protection products, into a separately listed entity.

The potential €20 billion valuation would make this one of Europe's most significant listings in recent memory. BASF has been restructuring its portfolio to focus on higher-margin specialty chemicals, and the agrichemical unit has been identified as a non-core asset that could unlock substantial shareholder value through a public listing.

Investment banks are expected to submit proposals for lead underwriting roles in the coming weeks. The Frankfurt Stock Exchange would benefit from a major listing amid a relatively quiet period for large European IPOs. BASF's agricultural solutions business generated approximately €10.3 billion in sales in 2023, making it a substantial standalone operation.