Zhengzhou Coal Mining Machinery Group, the mainland’s largest coal-mining equipment maker, plans to raise about US$ 300 million to US$ 350 million through an initial public offering in Hong Kong later this month, three people with direct knowledge of the transaction said yesterday.

The Henan-based company, which is listed in Shanghai, may offer the shares in Hong Kong at about a 15 per cent discount to its Shanghai shares. The Hong Kong shares are likely to be within an indicative range of HK$ 10.38 to HK$ 12.28, or a price-earnings ratio of 6.5 to 7.7 times next year’s earnings.