CORRECTED-UPDATE 1-Shaanxi Coal shares surge in biggest China listing since 2012
(Corrects share price high of the day in paragraph 3)
SHANGHAI Jan 28 (Reuters) - Shares of Shaanxi Coal Industry Co Ltd jumped 44 percent in their Shanghai debut on Tuesday, the largest mainland China listing since the nation's initial public offering market reopened late last month.
The spike for China's third biggest listed coal miner is in line with the 27 other firms that have listed this month, with many leaping 44 percent on their first day of trade, the maximum allowed.
In early morning trade, shares of Shaanxi Coal traded as high as 5.76 yuan, up 44 percent from the IPO price of 4 yuan. Trading will be suspended until 2:55 p.m. (0655 GMT) after triggering a circuit breaker that allows shares to rise up or down 44 percent from the IPO on the debut day.
Shaanxi Coal, a state-owned giant based in China's coal-rich northern province of the same name, raised 4 billion yuan ($661.38 million) in its IPO, down about 60 percent from a target set this month following increased oversight by the stock regulator.
The three other firms that have listed in Shanghai, China's biggest exchange, have given up some of their gains. Neway Valve Suzhou Co Ltd, the first company to list since mainland bourses closed in 2012, is trading at roughly 21 percent above its IPO price since listing just under two weeks ago.
Shaanxi Coal said proceeds from the IPO will be used to boost its coal reserves, increase production and for the construction of coal transport facilities. The firm will also use the funds to replenish its working capital.
China Securities, CICC and BOC International were the underwriters for the deal. ($1 = 6.0480 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Kazunori Takada and Edwina Gibbs)