China Postal Express and Logistics, the country's largest courier service provider, received approval from the China Securities Regulatory Commission for an initial public offering (IPO) in Shanghai.
It plans to issue up to 4 billion shares on the Shanghai Stock Exchange to raise 9.98 billion yuan ($1.59 billion). The funds will be used to pay for the expansion of distribution centers and warehousing facilities and the purchase of trucks.
The company, a unit of the state-owned China Post Group, operates 4,152 distribution centers and 24,691 delivery routes.
China's express delivery industry is expected to witness growth by leaps and bounds over the next few years. Deliveries will rise 21 percent annually, with revenues expected to grow 20 percent on average, according to the 12th Five-Year Plan (2011-15) for the express delivery industry released by the State Post Bureau.
Chinese carmaker Chery Automobile Co. will make efforts to export at least 171,000 units this year, said Jin Yibo, a company spokesman.
Chery's worldwide sales reached 17,412 units in April, up 39.1 percent year on year and 40.1 percent from March. Exports are expected to exceed 20,000 units in May, said Jin.
The company, based in east China's Anhui Province, has 16 production bases around the world and its products have been exported to more than 80 countries and regions. In 2011, Chery exported a record 160,200 vehicles, maintaining its status as a leading auto exporter in China.
Chery recently had many new moves in its worldwide expansion. In March, Chery and Indian-owned luxury carmaker Jaguar Land Rover announced they had reached an agreement on setting up a joint venture in China, and the two sides will hold equal shares. Chery opened a plant in Venezuela last August and has another plant under construction in Brazil, which is expected to start operations in 2013. It also announced plans to build assembly plants in Myanmar and several African countries.