Sinohydro Group, China's biggest dam builder, has cut the size of its proposed Shanghai share sale, raising less money than it originally planned, amid a weak sentiment in stocks.

The company now plans to sell 3 billion A shares and set a price range of 4.5-4.8 yuan each, according to a statement it filed to the Shanghai Stock Exchange late Sunday. The cut indicates the company may raise up to 14.4 billion yuan (US$2.3 billion) in the initial public offering. The indicated price range translates to 15-16 times 2010 earnings.

The Three Gorges Dam builder initially sought to issue 3.5 billion A shares to raise up to 17.3 billion yuan.

Hongyuan Securities analyst Zhou Rongzi said in a report that the new price range is not high and recommended clients subscribe to the IPO.

The key Shanghai Composite Index fell to its lowest level in more than 14 months yesterday. The index has fallen 14.8 percent so far this year.

Shares in Gezhouba Group, Sinohydro's main rival, have tumbled 26.8 percent this year in Shanghai trading.

Even after the cut, Sinohydro's proposed IPO will still be the largest share sale on China's mainland this year. Analysts said the company may gain from China's huge spending on hydro and water infrastructure projects.