In a statement to the Hong Kong stock exchange on Monday, China’s largest coal producer outlined its plans for the world's biggest share sale by a coal mining company, according to Bloomberg.com.

The company’s Chinese stock, known as A shares, would be worth about 50.9 billion yuan ($A7.8 billion) and will give domestic investors more options to participate and benefit from the growing coal demand, analysts said.

“The net proceeds from the share issue, after deducting relating expenses, will all be used to invest in and improve the group’s coal, power and transportation sectors; acquire strategic assets in the [People’s Republic of China] and overseas; and strengthen the group’s working capital base and for general corporate use,” the company said in a statement.

The company also announced an acquisition agreement with its major shareholder, Shenhua Group, where China Shenhua Energy will purchase the 100% equity interests in Shendong Coal and Shendong Power.

Shareholders will now meet to vote on the proposal.