Great Wall Motor, which makes sports utility vehicles (SUVs), pick-up trucks and sedans under its own brand name in China, plans to sell up to 304.2 million A shares, according to its prospectus.

The proceeds will be used to fund 3.2 billion yuan ($492 million) worth of projects, aimed at doubling annual production capacity to 800,000 units, it said.

The China Securities Regulatory Commission (CSRC) made the brief announcement of the approval on its website.

The company, which competes with rivals such as SAIC Motor and Dongfeng Motor , reported 900.6 million yuan in first-quarter net profit.

Last week, the company forecast an 80 percent rise in first-half profit, after a doubling in net income in 2010 to 2.83 billion yuan. .

Great Wall Motor, which generates about 12 percent of its revenue from overseas markets, is planning to start car production in Bulgaria by the end of this year in an effort to enter the European market. .

The company, which is China's No.1 maker of SUVs and pick-up trucks, but a late comer to the competitive sedan market, has hired Guotai Junan Securities Co as underwriter for the its Shanghai IPO.