May. 7, 2012 (China Knowledge) - China Postal Express and Logistics Co said Saturday that it had obtained approval from the China Securities Regulatory Commission to launch an initial public offering on the Shanghai Stock Exchange.

The company said earlier that it plans to issue up to 4 billion A shares to raise about RMB 9.97 billion through the IPO, which is expected to be the largest one on the A-share stock market this year so far.

Proceeds from the deal will be used to fund the expansion of distribution centers and warehousing facilities and the purchase of airplanes and trucks, and to replenish its working capital.

CITIC Securities Co<600030><6030> has been hired as sponsor and lead underwriter for the offering.

China Postal Express, a subsidiary of the state-owned China Post Group, runs 4,152 distribution centers and 24,691 delivery routes.