Yanzhou Coal Mining Co, the first mainland coal miner to be listed abroad, is to test investor appetite with a plan to raise about US$300 million via dual listings in New York and Hong Kong. China Everbright Holdings and New World Development have given their blessing to the issue, pledging to take between 5 and 10 per cent of the 820 million shares on offer, market sources said. More corporate investors are understood to be interested in buying shares which, along with those to be bought by China Everbright and New World, would equal to almost 25 per cent of the issue. Merchant bankers involved in the deal said they were confident the issue would be well received despite the market downturn. Yanzhou Coal Mining plans to price the issue at between $2.73 and $3.49 each, or a price earnings multiple of between 8.1 and 10.35 times this year's estimated earnings, sources said. It also plans to sell up to 80 million A shares to domestic investors at prices not lower than the H-share issue price. About 33.75 per cent of the H-share offer will be earmarked for placement outside the US and 10 per cent, or 61.5 million H shares, will be for initial public offering in Hong Kong. Another 33.75 per cent will be in the form of American Depository Shares for US investors. They will be issued at between US$17.59 and $22.48 each. Yanzhou Coal Mining owns and operates four mines in Shandong producing about 16.8 million tonnes last year, reaping net profit of 739 million yuan (about HK$691 million) on net sales of 3.27 billion yuan. About two billion yuan of the listing proceeds will be used to buy the Jining II mine in Shandong. The remainder will be used to buy equipment and as working capital. The public offer would be from November 1 to November 6. After the issue but before the exercise of an over-allotment option to issue 123 million additional H shares, Yanzhou Mining (Group) Corp will own 67.1 per cent of Yanzhou Mining Co's issued share capital.