[IPO Tracker] Shougang Langze Launches IPO, Set to Become Hong Kong's First Carbon Capture Stock

On May 26, 2026, $SHOUGANG LANZA (02553.HK)$ officially launched its global offering on the Hong Kong Stock Exchange. The company plans to offer approximately 40 million shares globally, including about 36 million shares via the international offering and approximately 4 million shares through the Hong Kong public offering.

The Hong Kong public offering period runs from May 26 to May 29. The final offer price and allocation results are expected to be announced on June 2. The offer price per share ranges from HK$14.60 to HK$17.10, implying a market capitalization of approximately HK$5.84 billion to HK$6.84 billion. The shares are scheduled to list on the Main Board of the Hong Kong Stock Exchange on June 3 under stock code 2553, with a board lot size of 200 shares and an estimated minimum subscription cost of HK$3,454.49.

Based on the offer price of HK$15.85 per share (the midpoint of the offer price range), and assuming the over-allotment option is not exercised, the net proceeds from this offering are expected to be approximately HK$533 million after deducting related issuance expenses. The proceeds will be primarily allocated as follows: approximately 24.5% for the construction of Phase II production facilities at Hebei Shoulang; approximately 24.8% for the development and construction of sustainable aviation fuel (SAF) production facilities in Baotou, Inner Mongolia; approximately 15.7% for research and development of microbial strains, production equipment, processes, and intelligent production management systems; and approximately 14.6% for technological upgrades at the company’s four existing production facilities.

This offering did not include any cornerstone investors but features a greenshoe option (over-allotment option), allowing for the potential sale of an additional 6 million shares, which would raise approximately HK$88.4 million based on the offer price of HK$15.85 per share.

Following its listing, Shougang Langze will become the first Hong Kong-listed stock focused on carbon capture, offering strong market scarcity value.

Shougang Langze was established in 2011 as a mixed-ownership enterprise controlled by Shougang Group and co-founded with a leading New Zealand carbon capture company that contributed technology as equity investment. $LanzaTech Global (LNZA.US)$ The company primarily engages in carbon capture, utilization, and storage (CCUS) businesses, producing low-carbon products such as ethanol and microbial protein through carbon capture and conversion technologies, and providing integrated low-carbon solutions.

Building upon the successful industrialization of its first-generation decarbonization technology, the company has further developed second-generation negative-emission technology that converts carbon dioxide, carbon monoxide, and hydrogen into ethanol and microbial protein. According to Frost & Sullivan, Shougang Langze is the first enterprise in the CCUS industry to achieve commercial-scale production of low-carbon products using proven synthetic biology technology. Based on projected 2025 revenue, the company is the largest player globally in the synthetic biology-based CCUS segment, with a market share of 58.4%.

The ethanol produced by the company can be used as automotive fuel or as a raw material for manufacturing perfumes, sportswear, detergents, and packaging materials. Its microbial protein is China’s first novel feed protein ingredient, commanding a significant price premium due to its nutritional and functional advantages. This protein typically contains more than 80% crude protein—over 15% higher than fishmeal and roughly double that of soybean meal.

Despite its technological leadership, Shougang Langze has faced significant financial pressure in recent years, characterized by declining revenues, widening losses, and a relatively concentrated revenue structure.

From 2023 to 2025, the company’s revenue declined from RMB 593 million to RMB 522 million (all figures in RMB unless otherwise stated). During the same period, net losses continued to widen, reaching RMB 110 million, RMB 246 million, and RMB 325 million, respectively. The combination of shrinking revenue and rising sales, administrative, and other operating expenses was the primary driver of the escalating losses. Additionally, weak market prices for fuel ethanol in 2025 further weighed on the company’s profitability.

According to the prospectus, Shougang Langze’s revenue is predominantly derived from ethanol, which accounted for 81.3% of total revenue in 2025, while microbial protein contributed 17.7%. Over the past three years, although ethanol sales volumes have continued to rise, the average selling price has steadily declined.

Shougang Langze has a high degree of customer concentration. In 2025, its top five customers accounted for 83.8% of total revenue, with the largest single customer contributing 22.9%.

Author: Yuan Yao

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