UPDATE 1-Zijin raises $1.4 bln after pricing Shanghai IPO at top

(Adds details from mainland statement on subscriptions, institutions' stakes in paras 6-9) (For an expanded IPO diary, please click <CN/IPOMENU>)

HONG KONG, April 18 (Reuters) - Zijin Mining Group Co Ltd (2899.HK) (601899.SS), China's second-biggest gold miner, raised 9.98 billion yuan ($1.43 billion) after it priced its Shanghai share sale at the top of an indicative range.

Zijin said on Friday it would issue 1.4 billion A shares at 7.13 yuan apiece, just days after it scaled back the offering from 1.5 billion shares as the domestic stock market slumped.

The company had set its indicative price range for the offering at 6.88 yuan to 7.13 yuan apiece, a slight premium to its Hong Kong share price at the time, according to sources familiar with the offer.

Zijin's Hong Kong-listed shares were down 2.2 percent at HK$7.45 on Friday morning, lagging a a 0.2 percent rise in Hong Kong's benchmark Hang Seng Index .HSI.

Zijin will use the proceeds from the share sale to fund expansion projects, mainly involving the mining and processing of gold and copper.

The offering, equal to nearly 10 percent of Zijin's enlarged capital, drew 2.15 trillion yuan in subscriptions, the company said in a statement published in the official Shanghai Securities News.

One-fourth of the shares were allotted to institutions and three-fourths to retail investors.

China Minmetals, the country's largest base metals trader and parent of Hong Kong-listed Minmetals Resources Ltd (1208.HK), and Baosteel Group, China's largest steel maker and parent of Baoshan Iron and Steel Co (600019.SS), each bought 8.23 million of the 350 million shares offered to institutions.

The share price valued the company at 40.69 times 2007 earnings per share, based on the expanded number of shares, the statement said.

The mainland share sale, which was announced last December, has been delayed partly by a slide in China's stock market. The country's main Shanghai stock index .SSEC has fallen about 47 percent since its peak hit last October. (US$1=HK$7.8=6.983 yuan) (Reporting by Donny Kwok; Additional reporting by Edmund Klamann in Shanghai; Editing by Anne Marie Roantree)