DATONG Coal Industry Co, China's second-largest coal producer by capacity, plans to sell as many as 300 million shares in Hong Kong to generate funds for acquisitions and projects.

The coal miner plans to hold the share sale within 12 months, it said in a statement to the Shanghai Stock Exchange yesterday, without estimating how much the transaction may raise.

The firm wants to expand as it responds to increased demand for energy in the world's fastest-growing major economy, which became a net importer of the commodity this year, Bloomberg News reported. A Hong Kong listing may raise about HK$4 billion (US$511 million), said Guo Chunyan, an analyst at Huatai Securities Co.

The company raised 1.9 billion yuan (US$248 million) by selling 280 million shares in Shanghai in June last year.