Aluminum smelter Chuangxin Industries jumped 25% in Hong Kong's grey market trading.

The China-based aluminum smelter aims to leverage strong industry margins and Hong Kong's resurgence as a preferred fundraising hub for Chinese firms.

The offering size puts Chuangxin in the same league as recent mid-cap listings, though smaller than Sany Heavy Industry's HK$12.36 billion ($1.59 billion) share sale last month that drew strong cornerstone demand.

Of the total 500 million shares, 50 million are allocated to Hong Kong's public offering, with the rest available to international investors. The offer price is capped at HK$10.99 per share and is expected to be no lower than HK$10.18, according to the filing.

Chinese aluminum smelters, which produce about half of the world's primary aluminum, are enjoying strong margins thanks to a government-imposed cap on capacity and steady domestic demand driven by the renewable energy sector.

The final offer price and share allocation details for Chuangxin Industries will be published on or before November 21, the company said.

Chuangxin plans to allocate about 50% of the funds to expand overseas production capacity, including building an aluminum smelter and installing new equipment. Around 40% will go toward green energy projects such as constructing power plants and purchasing related equipment, it said.