CRU congratulates Chuangxin Industries Holdings Ltd (hereinafter referred to as "Chuangxin Industries") for its recent HKEX Main Board listing. CRU is pleased to have provided comprehensive industry support throughout Chuangxin Industries' listing process, covering all stages from the Pre-A1 phase, through the filing of Form A1 (submission of the Application Proof), and up to the period prior to the HKEX Listing Committee hearing.
Chuangxin Industries is engaged in the production of alumina and electrolytic aluminium, with manufacturing bases located in Inner Mongolia and Shandong provinces. This listing marks the first time in recent years that an electrolytic aluminium producer to be listed on the international capital markets.
CRU supports Chuangxin Industries in the following areas:
- Drafting industry reports and the Industry Overview section of the prospectus.
- Collaborating with the issuer, co-sponsors and other listing agents to finalise industry-related content within the prospectus, including summary, competitive advantages and strategies, and business sections.
- Responding to industry-related comments from the Hong Kong Stock Exchange.
- Assisting the issuer in communications with investors regarding industry related comments.
Industry background and Chuangxin Industries Holding’s market position
As the second-largest industrial metal after steel, aluminium plays a crucial role in China's modernization and green energy transition. China's production and consumption of electrolytic aluminum have experienced significant growth over the past two decades, with annual consumption rising from over 3 million tons in 2000 to more than 45 million tons for 2024. According to CRU, Chuangxin Industries is the twelfth-largest electrolytic aluminum producer in terms of production output in 2024 in China.
Benefiting from abundant green and low-cost electricity resources, regions such as Inner Mongolia, Yunnan and Xinjiang are gradually replacing Shandong as China's largest electrolytic aluminum production bases. According to CRU, Chuangxin Industries’ ability to manage cash costs of aluminum per ton was among the top 5% of all aluminum smelting companies in China and competitive on a global scale, ranking among the top 30% in 2024.
Chuangxin Industries Holding’s IPO scale and use of proceeds
According to the prospectus, Chuangxin Industries offered 500 million shares (before the over-allotment option), of which 90% were allocated to the International Offering and 10% to the Hong Kong Public Offering. The maximum offer price was HKD 10.99 per share. The total gross proceeds (before the over-allotment option) could reach up to HKD 5.495 billion (approximately USD 707 million), and up to HKD 6.319 billion (approximately USD 813 million) after full exercise of the over-allotment option (greenshoe).
The proceeds will be primarily used for the construction of an integrated aluminium industry chain project in the Red Sea region of Saudi Arabia (including a 500 ktpa electrolytic aluminium smelter), as well as green energy projects/power facilities associated with the Huolinguole smelter in Inner Mongolia, among other uses.
CRU's Consulting Services and dedicated team
As a leading authority in global metals and mining market research, CRU is widely recognised by major participants in the international commodities markets and the capital markets for its independent, rigorous data analysis, expert insights, and market forecasts.
Our consulting teams are located worldwide, with dedicated on-the-ground teams in both the Asia-Pacific region and Mainland China. We possess extensive experience in market strategy research, industry due diligence, and industry consultant services for the Hong Kong capital markets.
If you would like to learn more about CRU’s consulting services, or would like to speak with an expert about how our capabilities can support your business, please contact us here.
