Shaanxi Coal Industry Co said on Tuesday it plans to raise 9.8 billion yuan ($1.62 billion) with a listing on the Shanghai Stock Exchange, setting the stage for a flood of deals in coming weeks with China's largest initial public offering since late 2011.

The deal is among 11 already approved by the China Securities Regulatory Commission since the regulator ended a freeze on IPOs that started in late 2012. Shaanxi Coal will begin book-building from Jan 10 to 14 and wrap up subscriptions by Jan 17.

The size of the Shaanxi IPO, which will be the biggest since Sinohydro Group Ltd's 13.5 billion yuan listing in October 2011, was reduced by 43 percent from the company's original fund-raising target of 17.2 billion yuan, previously announced in 2011.

Shaanxi Coal, a State-owned giant based in Shaanxi province, plans to issue up to 10 billion shares, or 10 percent of its expanded capital base, after the IPO, according to its prospectus.

The company said proceeds from the deal will be used to boost its coal reserves, increase production and aid in the construction of coal transport facilities. The firm will also use the funds to replenish its working capital.

"China's economic growth will continue to drive its growing need for energy. Even although the government is moving to eliminate small mines and outdated capacity, the country's coal demand growth will continue to stay robust," Shaanxi Coal said in the prospectus.

In the near term, however, Shaanxi Coal said domestic demand was still facing headwinds from slower economic growth and that prices are unlikely to rebound soon.

China's two top coal miners, Shenhua Group and China Coal Group, began to cut spot thermal coal prices for January bookings because demand has begun to wane.

The move by the country's leading suppliers to slash prices by as much as 70 yuan a ton is a clear sign that the coal market in China remains well supplied. It also heralds the end to a three-month rally in domestic prices.

Amid a slump in domestic coal prices last year, Shaanxi Coal saw its net profit for the first-half of 2013 fall 35.2 percent from the previous year to 2.7 billion yuan.