The China Securities Regulatory Commission (CSRC) said it has approved Liaoning Publishing and Media Co Ltd's initial public offering proposal for the domestic stock market.

In a draft prospectus posted on the CSRC's website, the company, based in the northeastern city of Shenyang, said it will offer up to 140 mln A-shares on the domestic market. It did not say whether it would list in Shanghai or Shenzhen.

The offer is equivalent to 25.41 pct of the company's enlarged capital, it said.

Proceeds will be used to open book stores, improve logistics and supplement working capital, the company said.

Ping An Securities is the major underwriter of the offer.

The company originally planned to list on the Hong Kong stock market.

China maintains strict controls on publishing through a system of state-allocated publication licences, censorship and a ban on direct foreign participation.

Liaoning Publishing posted a net profit of 40.94 mln yuan for the first half of this year on operating revenues of 429.54 mln yuan.