Glencore joins forces with industry giants for Chuangxin’s Hong Kong IPO amid rising aluminum prices

According to one In the Bloomberg report, people familiar with the matter said Glencore will participate as a cornerstone investor in the offering, joining Hillhouse Investment Management and China Hongqiao Group, the country’s largest private aluminum producer.

Together, the three firms and other key participants could account for roughly half of the $700 million deal, according to the sources, who asked not to be identified because the information remains private.

Aluminum prices on the London Metal Exchange (LME) hit a three-year high of $2,900 a tonne last week, buoyed by tight supply and a government-imposed cap on new smelting capacity.

These restrictions have held up the profitability of China’s smelters, which account for about half of global primary aluminum production.

Inner Mongolia-based Chuangxin plans to start taking investor orders for its Hong Kong debut from Friday, according to the same sources.

The company’s activities focus on the production of primary aluminum and alumina, the main raw material for smelting. Its largest customer is Innovation New Material Technology, a Shanghai-listed company led by Chuangxin Chairman Cui Lixin, according to the company’s Hong Kong stock exchange filing.

If completed, the IPO would be one of the largest metals-related listings in Hong Kong this year. Total proceeds from Hong Kong listings are on track to reach a four-year high by 2025, potentially exceeding $40 billion.

The recovery follows a long period of subdued activity, although analysts note that several high-profile debuts have underperformed recently.

As one of the world’s largest base metals traders, the company has increased its participation in key supply chains related to electrification and renewable infrastructure.

Aluminum, prized for its light weight and conductivity, is playing a central role in the shift to low-carbon technologies.

Representatives from Glencore and China Hongqiao declined to comment on the matter. Hillhouse did not immediately respond to a request for comment, while Chuangxin could not be reached.

The people familiar with the deal cautioned that final terms and investment allocations could still change as discussions continue.

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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.