BEIJING - The China Postal Express and Logistics Co, the country's largest courier service, has received regulatory approval for an initial public offering in Shanghai.
The China Securities Regulatory Commission has authorized the sale, according to a statement posted on the company's website on Saturday, without providing details on when the IPO will take place.
The logistics company plans to issue up to 4 billion shares on the Shanghai stock exchange to raise 9.98 billion yuan ($1.6 billion), according to a prospectus published in late April.
The funds will be used to pay for the expansion of distribution centers and warehousing facilities and the purchase of trucks, the prospectus said.
Analysts said as a market leader, China Postal Express' IPO will play an exemplary role for other courier companies aiming to go public.
China's express delivery industry is expected to witness galloping growth 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.
China Postal Express, a unit of the State-owned China Post Group, operates 4,152 distribution centers and 24,691 delivery routes.
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