SHANGHAI - China Hainan Rubber Industry priced its Shanghai initial public offering (IPO) at the top end of an indicative range, raising $709 million in what could be a harbinger of a steady deal flow next year in China, the world's top market for IPOs, Reuters reported Thursday.

Hainan Rubber, a leading Chinese rubber producer based in the southern island province of Hainan, set the offer price for its IPO at 5.99 yuan (90 cents) a share, said the report, citing a statement published on Thursday.

Companies of modest size such as Hainan Rubber are expected to make up the majority of new IPOs coming to the market in 2011, said Zhang Ying, an analyst at Industrial Securities in Shanghai.

According to the report, Hainan Rubber said its IPO proceeds will be spent on expanding its rubber production, upgrading technology and supplementing working capital.

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The company has not yet set its listing date, saying it will list as soon as possible following the final pricing, the report said.

According to the report, global IPOs have hit a record this year with companies expected to have raised more than $300 billion in IPO proceeds, said advisory firm Ernst & Young.

Chinese issuers made up over 46 percent of global IPOs in terms of IPO proceeds, raising $117.9 billion in 442 deals for the first 11 months of 2010, the firm said.