Yitai Coal, which already has B-shares traded in Shanghai, priced the offer at HK$43.00 each, compared with the marketing range of HK$43-53 per share, IFR said, citing two sources familiar with the matter.
That would rank it as the second-largest equity capital markets deal in Hong Kong this year after Chinese stock brokerage Haitong Securities' $1.85 billion stock offer in April.
Yitai Coal's pricing comes after several high-profile Asian fund raisings were put on hold due to choppy markets. Among the offers that were pulled or delayed were the $1 billion Hong Kong IPO by London jeweler Graff Diamonds and a $3 billion Singapore listing from motor-racing business Formula One.
The volatility has caused equity capital market deals in Asia ex-Japan to drop 30.4 percent to $77.9 billion in the first half of the year, with IPO volumes alone tumbling 62 percent.
Yitai Coal is selling 162.8 million new shares and the offer price represents price-to-earnings multiple of 6.7 for 2012, the report added.
Yitai Coal is set to start trading on July 12 and will become the first B-share company to trade in Hong Kong. B-shares, a class of stock traded in mainland China denominated in either US dollars or Hong Kong dollars, were first introduced in 1992 as a way to lure foreign investors to the domestic Chinese equities market.
As more Chinese companies tapped foreign investors through listings in Hong Kong and New York through the years, B-shares lost their lustre. Liquidity in the market dwindled, with no new B-share issuance since 2000, according to IFR, which is owned by Thomson Reuters.
Yitai Coal secured about $390 million from cornerstone investors, helping it to cover more than 40 percent of the offer. Investors included Datang International with a $100 million commitment and $30 million each from Baosteel Resources International and King Link Holding.
BOC International and China International Capital Corp (CICC) acted as sponsors and joint bookrunners with BNP Paribas , Bank of America Merrill Lynch, Macquarie and UBS.