SHOUGANG LANZA (02553) announced the launch of its global offering, with the subscription period running from May 26, 2026, to May 29, 2026. The company plans to issue 40 million H shares globally, subject to the exercise of an over-allotment option. The Hong Kong public offering portion will constitute 10% of the total shares (subject to reallocation), while the international offering will account for 90% (subject to reallocation and the over-allotment option). An additional 15% over-allotment option is also included.
The offer price is set within a range of HKD 14.60 to HKD 17.10 per share, with a board lot size of 200 shares. Trading of the H shares on The Stock Exchange of Hong Kong is expected to commence at 9:00 a.m. on June 3, 2026.
The company operates in the carbon capture, utilization, and storage (CCUS) sector. It primarily focuses on producing low-carbon products such as ethanol and microbial protein through carbon capture and utilization technologies, while also providing comprehensive low-carbon solutions. Since its establishment in 2011, the company has been deeply engaged in the CCUS industry. According to data from Frost & Sullivan, it is the first company in the CCUS sector to achieve commercialization and scaling of low-carbon product production using validated synthetic biology technology. As of the latest practicable date, the company has successfully commissioned four scaled production facilities across three different provinces in China, demonstrating its capability to replicate the industrial application of its proprietary technology.
For the fiscal years ended December 31, 2023, 2024, and 2025, the company reported revenues of RMB 593 million, RMB 564 million, and RMB 522 million, respectively. Its primary revenue streams come from the sale of ethanol, microbial protein, and by-products such as biogas and crude alcohol. Additionally, the company provides comprehensive low-carbon solutions to industrial clients seeking to implement its proprietary synthetic biology technology in their facilities.
The net proceeds from the global offering are estimated to be approximately HKD 487 million (equivalent to about RMB 425 million) assuming an offer price of HKD 14.60 per share (the minimum price), approximately HKD 533 million (equivalent to about RMB 466 million) assuming a mid-point offer price of HKD 15.85 per share, or approximately HKD 580 million (equivalent to about RMB 506 million) assuming an offer price of HKD 17.10 per share (the maximum price).
The company plans to allocate the net proceeds as follows: approximately 24.5% will be used for the second-phase production facility of its Hebei Shoulang project over the next two years. About 24.8% is earmarked to fund the construction and development of a Sustainable Aviation Fuel (SAF) production facility in Baotou, Inner Mongolia, over the next two years. Roughly 15.7% is allocated for research and development over the next three years, focusing on strains, production equipment, processes, and the company's intelligent production management system to enhance production efficiency.
Approximately 14.6% of the proceeds will be used for technological upgrades at the company's four existing production facilities, including improvements to fermentation, pre-treatment, and wastewater treatment processes. About 9.7% is designated for new product development initiatives over the next three years. An estimated 4.3% will be invested in a gas company to be established by the local government in Ningxia Binze, which will be responsible for constructing industrial exhaust gas transmission pipelines and related infrastructure. The remaining 6.4% is intended for general corporate purposes and working capital requirements.
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