The figure exceeded the RMB 2.26 trillion received by China Construction Bank (CCB), the country's second largest lender by assets, around a week ago.

Analysts said the investors chased Shenhua shares for an almost certain price jump on debut, and on expectation of rosy corporate earnings boosted by rising coal prices.

The substantial subscriptions will likely result in the coal firm raising RMB66.58 billion by selling the 1.8 billion shares at RMB36.99, the top end of the RMB34.99 to  RMB36.99 price range.

If this happens, the IPO size of Shenhua would then exceed that of the CCB, which raised RMB58.05 billion in its Shanghai IPO, and become the largest share sale on the Chinese mainland.

Chinese government has been encouraging red-chip companies to launch domestic IPOs to increase equities supply in a bid to mop up excess liquidity and help cool the stock market, where the key index has more than doubled this year.

The company has said it would use the proceeds to build or upgrade its coal, power and transportation systems and purchase strategic assets.

By the end of this June, Shenhua had proven reserves of 5.99 billion metric tons, mainly in northern China's Shanxi Province and Inner Mongolia Autonomous Region.

Last update : Thursday, 27 September 2007

Keywords : Shenhua, Coal Producer, IPO, A-Share

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