Hongqiao, located in Shandong province and which mainly produces molten aluminium alloy, will offer 1.74bn shares on the Hong Kong exchange priced from HK$7.10 to HK$9.90, raising between $1.6bn and $2.2bn.

Hongqiao intends to use the funds to increase production from the current 1Mt/y of aluminium to nearly 2Mt by the end of 2012.

Prices for aluminium have recovered after slumping last year and have been supported by energy controls from Beijing and depressed production in Q4 last year.