Chinese Biofuel Producer Shougang Lanzatech Launches $87 Mln Hong Kong IPO

About this update from Beijing Shougang Co., Ltd. Class A

By Jason ChauBiofuel producer Beijing Shougang Lanzatech Technology has started taking orders for its initial public offering in Hong Kong, joining a wave of Chinese companies seeking listings in the city.Shougang Lanzatech said Tuesday in an exchange filing that it is seeking to raise 684.0 million Hong Kong dollars, equivalent to US$87.3 million, via the issuance of 40 million shares at HK$17.10 each.The company said it plans to use the offering's net proceeds for the construction and technological upgrading of its production facilities, research and development, and investments in a gas company to be established by local authorities in China's Ningxia region for the construction of off-gas transmission pipelines.Founded in 2011, Shougang specializes in producing low-carbon products such as ethanol and microbial protein using carbon capture technologies. Its ethanol products can be used as automotive fuel and as raw materials for perfumes and packaging materials, while its microbial protein products are used in agricultural planting and livestock breeding applications.It has commissioned four large-scale production facilities across China.The company is part of China's booming low carbon energy sector, which has rapidly expanded its share of the country's energy mix over the past decade amid Beijing's efforts to strengthen energy self-sufficiency and reduce reliance on fossil fuel imports.The offering is set to close May 29, with shares expected to start trading June 3.Write to Jason Chau at [email protected]

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