Bain-Backed Renewable Fuel Maker EcoCeres Targets $1 Billion Hong Kong IPO, Sources Say

HONG KONG, Sept 24 (Reuters) - EcoCeres, a Hong Kong-based producer of renewable fuels backed by private equity firm Bain Capital, plans to raise about $1 billion in a Hong Kong initial public offering, two people with knowledge of the matter said.

The company, whose flagship product is sustainable aviation fuel (SAF), aims to make its market debut in Hong Kong by the end of the year, said the people, who declined to be identified as the information is private.

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Its main shareholder Bain Capital aims to sell down part of its holding in the planned IPO, they added.

A spokesperson for Bain declined to comment.

The planned listing would offer one of the clearest public market tests yet of investor appetite for pure-play SAF producers, as airlines and governments worldwide seek to meet ambitious decarbonisation targets for aviation.

It also underscores the rapid commercialisation of the SAF industry, which has moved from niche biofuel experiment to strategic priority in recent years, with several countries and blocs — including Singapore, Japan and the European Union — mandating SAF blending requirements.

Deutsche Bank ((DBKGn.DE), opens new tab), HSBC ((HSBA.L), opens new tab), Morgan Stanley ((MS.N), opens new tab) and UBS ((UBSG.S), opens new tab) are among the banks working on the deal, the people said.

Output Capacity and Other Products

The target offering size, listing timetable and Bain Capital's planned stake sale have yet to be finalised and are subject to market conditions and regulatory approvals, the two sources said.

EcoCeres, Towngas - one of EcoCeres' main investors - Deutsche Bank, Morgan Stanley and UBS declined to comment on the matter. HSBC did not respond to a request for comment.

EcoCeres, which makes renewable fuels from waste-based feedstocks, including used cooking oil, had considered a London listing before turning its focus to Hong Kong, one of the sources said.

Incubated by Hong Kong's city gas utility Towngas in 2008, EcoCeres is a large SAF producer globally, with combined renewable fuels capacity of about 770,000 metric tons per year across production bases in Zhangjiagang in eastern China and Johor, Malaysia, according to the company's website.

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Bain Capital invested over $700 million in EcoCeres in 2022, while it also counts Kerogen Capital among its investors, EcoCeres' website showed.

Besides SAF, EcoCeres' products include renewable diesel and renewable naphtha, a fuel ingredient. SAF is a lower-emission substitute for conventional jet fuel that can cut greenhouse gas emissions by about 80% versus conventional jet fuel and can be used in existing aircraft without modification.

EcoCeres began operating its second plant in Malaysia, the country's first SAF facility, in October 2025, according to its website. The plant can produce up to 420,000 tons a year of SAF, renewable diesel and bio naphtha, the company said.

The company, which has operated its first biofuel plant in China since 2021, supplies major airlines including Qantas, Air France, British Airways and Lufthansa.