Glencore (LSE:GLEN,OTC Pink:GLCNF) is reportedly set to take a major position in the Hong Kong initial public offering (IPO) of Chuangxin Industries Holdings as aluminum prices climb to multi-year highs.
According to a Bloomberg report, people familiar with the matter said Glencore will participate as a cornerstone investor in the offering, alongside Hillhouse Investment Management and China Hongqiao Group, the country’s largest private aluminum producer.
Together, the three firms and other cornerstone participants could take up roughly half of the US$700 million deal, according to the sources, who asked not to be identified as the information remains private.
Aluminum prices on the London Metal Exchange (LME) hit a three-year high of US$2,900 per metric ton last week, buoyed by tight supply and a government-imposed ceiling on new smelting capacity.
Those restrictions have helped sustain profitability among China’s smelters, which account for about half of global primary aluminum output.
Chuangxin, based in Inner Mongolia, plans to begin taking investor orders as soon as Friday for its Hong Kong debut, according to the same sources.
The company’s business centers on the production of primary aluminum and alumina, the key raw material for smelting. Its largest customer is Innovation New Material Technology, a Shanghai-listed firm led by Chuangxin chairman Cui Lixin, according to the company’s Hong Kong 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 hit a four-year high in 2025, potentially topping US$40 billion.
The rebound follows a long period of muted activity, though analysts note that several high-profile debuts have underperformed recently.
As one of the world’s largest traders of base metals, the company has been ramping up its participation in key supply chains tied to electrification and renewable infrastructure.
Aluminum, valued for its light weight and conductivity, plays a central role in the shift toward low-carbon technologies.
Representatives for 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.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.