Bain-backed EcoCeres targets $1bn Hong Kong IPO
Renewable fuels producer EcoCeres is targeting a Hong Kong initial public offering that could raise around $1bn, with private equity investor Bain Capital expected to sell part of its stake, according to a report by Reuters citing unnamed people familiar with the plans.
Renewable fuel producer EcoCeres is planning to go public in Hong Kong, potentially raising $1 billion, according to Reuters. Private equity firm Bain Capital, which owns a significant stake in the company, is expected to participate in the initial public offering (IPO), using proceeds to partially sell its investment, sources indicate.
EcoCeres, based in Hong Kong, specializes in sustainable aviation fuel (SAF) and aims to complete the listing by the end of 2026, although the offering size and schedule are contingent on market conditions and regulatory approvals. Bain Capital, EcoCeres' largest shareholder, invested over $700 million in the company in 2022. The IPO would serve as a crucial public-market test for EcoCeres as the demand for SAF grows due to airlines, governments, and regulators striving to cut aviation emissions.
EcoCeres will face a test in multiple jurisdictions, including Singapore, Japan, and the European Union, which have implemented or are implementing SAF blending requirements. Deutsche Bank, HSBC, Morgan Stanley, and UBS are among the banks involved in the potential transaction. While EcoCeres initially considered a London listing, it decided to pursue a Hong Kong listing instead.
Founded within Hong Kong utility Towngas in 2008, EcoCeres uses waste-based feedstocks like used cooking oil to produce renewable fuels. The company operates production facilities in Zhangjiagang, eastern China, and Johor, Malaysia, with a combined capacity of around 770,000 metric tonnes of renewable fuels annually. EcoCeres' investors include Bain Capital, Kerogen Capital, and Towngas, which remains one of the company's principal investors.
The final details of the offering structure, valuation, listing timeline, and the size of Bain Capital's potential stake sale remain to be determined.
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