Shenhua announced Monday it would issue 1.8 billion A shares at 34.99-36.99 yuan each.

China's biggest coal producer received shareholder approval for the plan last month.

It will use the proceeds of the sale to invest in and improve the group's coal, power and transportation sectors, acquire assets in China and overseas, and strengthen the group's working capital base, Shenhua chairman Chen Biting said during August.

Of the funds raised, $US2.2 billion will be used to upgrade projects, $US2.1 billion for working capital over three years, and the rest has been marked for mergers and acquisitions.