Investcorp backs Chuangxin IPO as cornerstone investor

Bahrain-based asset manager Investcorp has become the cornerstone investor for Chinese company Chuangxin Industries Holdings’ $813 million initial public offering (IPO) on the Hong Kong Stock Exchange.

Investcorp said in a statement that it had invested in the IPO through the Golden Horizon Cooperation Fund. The transaction size was not disclosed.

Half of the IPO proceeds will be allocated to the construction of an aluminium smelter and processing facility in Yanbu, Saudi Arabia. 

The other 50 percent will be invested in transitioning Chuangxin’s energy mix towards wind and solar power generation, with the target of reaching a 50 percent renewable energy contribution by 2030, Investcorp said.

Chuangxin owns an alumina refinery in Shandong Province, China, and an aluminium smelter in Inner Mongolia Province. It reported revenue of $2.1 billion and earnings before interest, tax, depreciation and amortisation of $666 million in 2024. 

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In October, Investcorp announced the final close of the Golden Horizon Cooperation Fund at $750 million. The fund invests in high-growth, profitable companies across consumer, healthcare, transportation and logistics, and business services sectors in the GCC and China.

“One of our key objectives of the Golden Horizon Cooperation Fund was to foster cross-border expansion and value creation between the GCC and China,” Walid Majdalani, head of emerging-markets private equity at Investcorp, said.

The fund has completed three investments in the GCC: NourNet, an ICT services provider in Saudi Arabia; Trukker, a Mena-based on-demand digital trucking aggregator; and Salla, an e-commerce platform in Saudi Arabia, according to the Investcorp website.

In July Investcorp established a €240 million ($282 million) single-asset continuation fund to support the growth of Italian cybersecurity company HWG Sababa.