en.Wedoany.com Reported - On June 3, Beijing Shougang LanzaTech Technology Co., Ltd. (02553.HK) was officially listed on the Main Board of the Hong Kong Stock Exchange, becoming the "first carbon capture stock." The company issued a total of 40 million H-shares globally, with an IPO price of HK$14.6 per share, raising net proceeds of approximately HK$486 million. On its debut day, the stock price surged to a high of HK$29.98 in early trading, gaining over 100%, before experiencing significant volatility during the session. It closed at HK$21.06, up about 44% from the IPO price. Based on the closing price, the company's market capitalization stood at approximately HK$8.42 billion.
Founded in 2011, Shougang LanzaTech is a joint venture between Shougang Group and New Zealand-based carbon capture company LanzaTech, focusing on the carbon capture, utilization, and storage (CCUS) industry. The company's core technology utilizes genetically engineered microorganisms—Clostridium autoethanogenum—through a gas fermentation process to directly convert carbon-containing industrial tail gases from the steel and metallurgy industries into ethanol and microbial protein. Shougang LanzaTech operates four commercial-scale plants in Hebei, Ningxia, and Guizhou, with a combined annual production capacity of 210,000 tonnes of ethanol and 23,200 tonnes of microbial protein. According to Frost & Sullivan data, the company is a global leader in the CCUS industry in commercializing and scaling low-carbon products using synthetic biology technology.
Despite its technological edge, Shougang LanzaTech has faced sustained pressure over the past three years. From 2023 to 2025, the company's revenue was RMB 593 million, RMB 564 million, and RMB 522 million, respectively, showing a year-on-year decline. Its net losses during the period were RMB 110 million, RMB 246 million, and RMB 325 million, with cumulative losses of approximately RMB 681 million over three years. The decline in performance was primarily due to factors such as falling market prices for fuel ethanol and fluctuations in upstream industrial tail gas supply. For example, the capacity utilization rate of the Guizhou plant was only 14.9% in 2025.
Shougang LanzaTech's listing journey has been fraught with twists and turns. The company had previously filed for an A-share listing on the Shanghai Stock Exchange in June 2023 but failed. It then shifted its focus to the Hong Kong stock market. In June 2025, it submitted its first application to the Hong Kong Stock Exchange and initiated a share offering, but the listing plan was suspended twice due to a civil lawsuit filed by Jiyuan Junyi, the second-largest shareholder of its subsidiary Shoulang Jiyuan. The lawsuit alleged that Shougang LanzaTech had added approximately RMB 160 million in investment without prior notice and unilaterally set product prices. In March 2026, Shougang LanzaTech reached a settlement agreement with Jiyuan Junyi, removing the obstacle to its listing.
The net proceeds from this offering will be primarily used for project expansion: approximately 24.5% for the construction of the second phase of the Hebei Shoulang project, which adopts second-generation carbon-negative technology; about 24.8% for the construction of a sustainable aviation fuel (SAF) production facility in Baotou, Inner Mongolia, scheduled to start construction in 2026 and commence production in 2027; and roughly 15.7% for research and development of bacterial strains and intelligent production systems. Current challenges facing Shougang LanzaTech include uncertainties such as cyclical fluctuations in fuel ethanol prices, stability of upstream industrial tail gas supply, and the commercialization progress of its new SAF business.
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