Shougang Langze (02553) will be open for subscription from May 26th to May 29th, with plans to globally issue 40 million shares.

Shougang Langze (02553) will be listed from May 26, 2026 to May 29, 2026. The company plans to globally issue 40 million H shares (subject to the exercise of the over-allotment option), with 10% for sale in Hong Kong (subject to reallocation) and 90% for international sale (subject to reallocation and exercise of the over-allotment option), with an additional 15% over-allotment option. The offer price will be between HK$14.60 and HK$17.10 per share, in lots of 200 shares each. It is expected that the H shares will commence trading on the Stock Exchange on the morning of June 3, 2026. The company is engaged in the Carbon Capture, Utilization, and Storage (CCUS) industry, mainly focusing on producing low-carbon products such as ethanol and microbial protein through carbon capture and utilization technology, and providing comprehensive low-carbon solutions. Since its establishment in 2011, the company has been deeply involved in the CCUS industry. According to Frost & Sullivan, the company is the first in the CCUS industry to commercialize and scale-up low-carbon products using validated synthetic biology technology. As of the latest feasible date, the company has successfully operated four scaled production facilities in three different provinces in China, proving its ability to replicate the industrial application of proprietary technology. For the years ended December 31, 2023, 2024, and 2025, the company's revenues were RMB 593 million, RMB 564 million, and RMB 522 million, respectively. The company's main revenue comes from the sale of ethanol, microbial protein, biogas, and crude alcohol, while also providing low-carbon comprehensive solutions to industrial customers seeking to implement the company's proprietary synthetic biology technology in their facilities. The net proceeds received from the global offering will be approximately HK$487 million (equivalent to approximately RMB 425 million), assuming a per-share offering price of HK$14.60 (minimum offering price); approximately HK$533 million (equivalent to approximately RMB 466 million), assuming a per-share offering price of HK$15.85 (midpoint of the offering price range); or approximately HK$580 million (equivalent to approximately RMB 506 million), assuming a per-share offering price of HK$17.10 (maximum offering price). Approximately 24.5% of the net proceeds are expected to be used in the next two years for the company's Hebei Shoulang Phase II production facility. Approximately 24.8% of the net proceeds are expected to be used in the next two years to fund the construction and development of SAF production facilities in Baotou, Inner Mongolia. Approximately 15.7% of the net proceeds are expected to be used in the next three years for research and development of strains, production equipment and processes, and the company's intelligent production management system to enhance production efficiency. Approximately 14.6% of the net proceeds are expected to be used for technical upgrades of the company's four production facilities (including upgrades to the fermentation process, pretreatment, and wastewater treatment). Approximately 9.7% of the net proceeds are expected to be used for the development of new products in the next three years. Approximately 4.3% of the net proceeds are expected to be invested in a gas company proposed by the local government of Binze, Ningxia, for the unified construction of Jianshe Industry Group's exhaust gas transmission pipeline and supporting facilities. Approximately 6.4% of the net proceeds are expected to be used for general corporate purposes and operational funding needs.