YuanShengTai Dairy Farm, China's fourth biggest raw milk producer, is set to fall on its Hong Kong trading debut on Tuesday, after raising $425 million in the second initial public offering by a dairy company in the city in two months.

Known as YST Dairy, its shares were indicated to open at HK$2.58, compared with an IPO price of HK$2.70, according to Hong Kong stock exchange data. The deal was marketed in a range of HK$2.49-HK$3.18 per share.

The benchmark Hong Kong share index is indicated to start flat.The IPO got a last minute boost after the Chinese government unveiled major economic reforms following the Third Plenum that ended last week, which included allowing millions of families to have two children in the country's most significant liberalization of its strict one-child policy in about three 

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