Hong Kong —
EcoCeres, a Hong Kong-based producer of renewable fuels backed by private equity firm Bain Capital, is preparing for a major initial public offering as it looks to expand in the alternative-fuels sector.
The company intends to raise about $1 billion from the offering, according to two people familiar with the plans who spoke to Reuters. They requested anonymity because the details have not been made public.
EcoCeres is seeking to complete its Hong Kong listing by the end of 2026, the sources said.
Sustainable aviation fuel, or SAF, is at the center of the company’s business. The fuel has drawn increasing attention from the aviation industry as airlines and other businesses look for alternatives to traditional fossil-based jet fuel.
The proposed IPO would bring another major renewable-energy business to Hong Kong’s stock market while giving investors an opportunity to gain exposure to the sustainable-fuels sector.
Bain Capital’s backing provides the planned offering with a prominent private-equity sponsor. The potential listing also comes as investors continue to focus on companies involved in alternative energy and transportation fuels.
At approximately $1 billion, the proposed transaction would represent a sizeable Hong Kong listing. The eventual offering size, timing and other terms, however, could change as EcoCeres advances through the listing process.
The company’s emphasis on sustainable aviation fuel places it in a specialized segment of the renewable-energy industry. SAF is intended for use in aviation and can produce lower lifecycle emissions than conventional jet fuel, although the reduction depends on its production methods and the feedstocks used.
EcoCeres has not yet completed the proposed IPO. Details of the transaction are based on information from people familiar with the plans rather than a public filing containing final terms.
The potential listing will be closely watched by investors tracking Hong Kong’s IPO market as well as the financing outlook for businesses operating in the renewable-fuels industry.
If completed as planned, the IPO would provide EcoCeres with access to public-market funding and give Hong Kong investors another listed company focused on sustainable aviation fuel and renewable energy.
Original article
Comments