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.