YuanShengTai Dairy Farm, China's fourth biggest raw milk producer, has priced its Hong Kong initial public offering (IPO) at HK$2.70 per share, below the mid-point of expectations, IFR reported.

The company offered 1.22 billion shares in the IPO, putting the base deal value at HK$3.294 billion ($425 million), according to Reuters calculations.

The deal was marketed in an indicative range of HK$2.49-HK$3.18 per share and had received strong demand towards the top end of the range on the back of positive sentiment for China's dairy sector in recent months.

Credit Suisse and Macquarie Group acted as joint global coordinators of the IPO.