(Yicai Global) Oct. 17 -- Carmaker BAIC Motor Corp. [HK:1958] plans to issue up to 485 million shares via an initial public offering on mainland China's A-share market.

The firm's board of directors held an extraordinary shareholder meeting yesterday to push through the proposal, the company said. Issued shares will account for at most 6 percent of company equity after the IPO, and the proposed share offering is subject to the approval of the China Securities Regulatory Commission, it said.

The group said it will use proceeds to upgrade its production bases, carry out technical transformations and capacity building projects, replenish working capital and repay bank loans.

BAIC Motor traded at USD1.07 (HKD8.34) per share at midday today, with a market cap of HKD17.52 billion.

Beijing Automotive Group Co., BAIC Motor's controlling shareholder, founded the company in 2010 after acquiring intellectual property from Swedish automaker Saab Automobile AB for USD200 million in 2009.