Glencore Plc and Hillhouse Investment Management plan to invest in Chuangxin Industries Holdings Ltd’s upcoming initial public offering in the Hong Kong Special Administrative Region, people familiar with the matter said, signaling confidence in the Chinese mainland aluminum smelter’s prospects as the metal’s price surges.

The Swiss commodity giant and the asset manager are poised to participate as cornerstone investors — an IPO buyer guaranteed a share allocation for agreeing to hold the stock for a period of time — the people said, asking not to be identified in discussing a private matter.

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China Hongqiao Group Ltd, the country’s largest private aluminum producer, is also set to be a cornerstone, the people said. The three firms and other cornerstone investors may buy about half of the deal, they said.

Based in the Inner Mongolia autonomous region, Chuangxin plans to start taking investor orders as soon as Friday for an IPO that may fetch about $700 million. 

Mainland aluminum smelters, producing half of the world’s primary aluminum, are enjoying elevated profitability helped by resilient demand from the renewable energy sector. Aluminum has also been one of the strongest performers on the London Metal Exchange in recent months, reaching a three-year high last week.

Deliberations are ongoing, and details of the deal including the investments might change, the people added.

A representative for Glencore had no immediate comment. A China Hongqiao representative declined to comment. Chuangxin and Hillhouse didn’t respond to requests for comment.

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Chuangxin counts on the production of primary aluminum and alumina for much of its business. Its biggest customer is Shanghai-listed Innovation New Material Technology Co, which is headed by Chuangxin’s chairman, Cui Lixin, according to a filing with the Hong Kong stock exchange.

Hong Kong listings are set to close 2025 at a four-year high, with proceeds potentially topping $40 billion, according to Bloomberg Intelligence’s estimate.

China International Capital Corp and Huatai Securities Co are arranging Chuangxin’s IPO.