EcoCeresThe Hong Kong-based company is preparing an initial public offering (IPO) in Hong Kong with the aim of raising around $1 billion, according to sources familiar with the operation cited by Reuters, sustainable aviation fuel (SAF) as its main product and aims to complete its stock market debut before the end of 2026. However, the final size of the offering and the timeline still depend on market conditions and regulatory approvals. Furthermore, Bain Capital, EcoCeres’ main shareholder, is considering selling a portion of its stake during the operation. Deutsche Bank, HSBC, Morgan Stanley, and UBS are among the financial institutions working on the potential IPO.
EcoCeres takes its SAF business to the stock market
On the other hand, the initial public offering would test the interest of public markets in a company specializing in renewable fuels and with significant exposure to SAF this fuel serves as a lower-emission substitute for conventional jet fuel and can be used in existing aircraft without modifications. According to data collected by Reuters, SAF can reduce greenhouse gas emissions by around 80 % compared to conventional fuel.
The deal also comes as various markets move forward with requirements for incorporating SAFs into aviation, Singapore, Japan, and the European Union are among the jurisdictions that have established blending requirements to encourage their use. EcoCeres had previously considered a potential listing in London before turning its attention to Hong Kong.
Renewable fuel capacity reaches 770,000 tons
Likewise, the industrial scale of EcoCeres this constitutes another important part of its business profile, the company has a combined capacity of approximately 770,000 metric tons of renewable fuels annually between its facilities in Zhangjiagang, China, and Johor, Malaysia. Its portfolio includes SAF, renewable diesel, and renewable naphtha. The raw materials used come from waste and include used cooking oil. The company was incubated in 2008 by Towngas, a Hong Kong-based urban gas company, and one of its main investors, Bain Capital, invested more than $700 million in EcoCeres in 2022 while Kerogen Capital is also part of its investor group.
Malaysia plant boosts SAF production
In October 2025, EcoCeres began operating its second plant in Malaysia, considered by the company to be the country’s first SAF facility, the plant can produce up to 420,000 tons per year of SAF, renewable diesel and bionaphtha this capacity complements the operations of EcoCeres’ first biofuels plant in China, which has been operational since 2021.
In addition, the company supplies fuel to international airlines such as Qantas, Air France, British Airways y Lufthansa the potential IPO would thus connect two markets for EcoCeres with the Hong Kong financial market and the sustainable aviation fuel market. For now, the final terms of the offering and the stake that Bain Capital might sell remain to be determined.
Source: Reuters
Photo: Shutterstock
