EcoCeres, a Hong Kong-based producer of renewable fuels backed by Bain Capital, is preparing an initial public offering in Hong Kong that could raise about $1 billion. People familiar with the matter said the company aims to complete its stock market debut before the end of 2026, although final terms still depend on market conditions and regulatory approvals. The planned listing would offer one of the clearest public market tests yet for a pure-play sustainable aviation fuel producer.
Strategic Market Test
The IPO is expected to gauge how public investors value companies focused exclusively on sustainable aviation fuel, commonly known as SAF. Airlines and governments are pursuing ambitious decarbonisation targets for aviation, creating stronger demand for lower emission fuel alternatives. At the same time, Singapore, Japan and the European Union have introduced SAF blending requirements, which have accelerated the industry's commercialisation.
SAF's Decarbonisation Role
SAF can cut greenhouse gas emissions by about 80 percent compared with conventional jet fuel and can be used in existing aircraft without modification. This makes it a practical near-term option for reducing aviation emissions while other technologies are still maturing. The regulatory momentum across key aviation markets is therefore transforming SAF from a niche biofuel experiment into a strategic priority.
Company Background and Capacity
EcoCeres was incubated in 2008 by Hong Kong utility Towngas and has developed into a significant global SAF producer. It operates production bases in Zhangjiagang in eastern China and Johor, Malaysia, with combined renewable fuels capacity of about 770,000 metric tons per year. The company's products include SAF, renewable diesel and renewable naphtha, and its feedstocks include waste materials such as used cooking oil.
Bain Capital and Banking Support
Bain Capital invested more than $700 million in EcoCeres in 2022 and is the company's main shareholder, while Kerogen Capital is also an investor. According to people familiar with the matter, Bain Capital aims to sell down part of its holding during the planned IPO, although the exact size has yet to be decided. Deutsche Bank, HSBC, Morgan Stanley and UBS are among the banks working on the transaction.
Response and Regulatory Considerations
EcoCeres, Towngas, Deutsche Bank, Morgan Stanley and UBS declined to comment on the planned IPO, while HSBC did not respond to a request for comment. A spokesperson for Bain also declined to discuss the matter. The sources noted that regulatory approvals and market conditions will ultimately determine the final size and schedule of the offering.
Manufacturing Footprint and Customers
EcoCeres began operating its second plant in Malaysia in October 2025, which the company describes as the country's first SAF facility. The plant can produce up to 420,000 tons a year of SAF, renewable diesel and bio naphtha, complementing the company's first biofuel plant in China that has been operational since 2021. EcoCeres already supplies major airlines including Qantas, Air France, British Airways and Lufthansa.
EcoCeres had previously considered a London listing before focusing on Hong Kong, according to one person familiar with the discussions. The target offering size, timetable and Bain Capital's planned stake sale remain subject to regulatory approvals and market conditions. If completed, the IPO could reinforce Hong Kong's role as a listing venue for sustainability-focused companies and sharpen public market attention on the commercialisation of sustainable aviation fuel.