Chinese shares plummeted 4.27 percent to a 14-month low Tuesday, as concerns that capital would flow to a major initial public offering by Agricultural Bank of China (ABC) ignited panic selling.

The Agricultural Bank of China said late Monday it would offer a total of 59.51 billion shares in Shanghai, with each share at 2.52 to 2.68 yuan (0.37 to 0.39 U.S. dollars).

The IPO was expected to raise up to 23.2 billion U.S. dollars, making it the world's largest listing ever.

The major gauge Shanghai Composite Index down 4.27 percent, or 108.23 points, to end at 2,427.05 points, the lowest since April 2009.

The Shenzhen Stock Index dropped 5.03 percent, or 503.15 points, to 9,508.91 points.

Total turnover stood at 136.68 billion yuan, up from 90.85 billion yuan on the previous trading day.

Losers outnumbered gainers by 854 to 14 in Shanghai and 950 to 20 in Shenzhen.