Chinese coal mining equipment maker Zhengzhou Coal Mining Machinery Group Co Ltd is planning on a Hong Kong listing to raise funds for its overseas expansion, the company said in a statement.

The board of directors of Zhengzhou Coal Mining Machinery has approved the IPO plan, the company said over the weekend.

The size of the IPO will represent 20 percent of the company's enlarged share capital after the planned sale, it said.

Zhengzhou Coal Mining Machinery's Shangha-listed shares closed down 3.75 percent at 28.02 yuan a share on Tuesday. The stock has fallen 31 percent since the start of the year, underperforming the broader benchmark , which has dropped 12 percent.