Sichuan Expressway, a Hong Kong-listed toll-road operator, is set to become the first to launch an initial public offering on the Shanghai exchange after a nine-month ban, paving the way for more mainland firms to return to the domestic bourse. The company that plans to float 500 million A shares to raise 1.4 billion yuan (HK$1.59 billion) is expected to obtain approval from the China Securities Regulatory Commission soon, Chen Hua, an official with China Galaxy Securities, the operator's underwriter, said yesterday. 'We haven't received the go-ahead to start IPO sales yet,' he said. 'But we believe it will take place very soon.' Sichuan Expressway will also emerge as the first major flotation on the exchange after the CSRC resumed new share offers last month. Reuters reported yesterday that the regulator had signed the final approval for Sichuan Expressway to float shares. A company official declined to comment. Sources said the CSRC gave priority to H shares when vetting A-share listing applications for their perceived quality. Sichuan Expressway's return to the A-share market might also open a floodgate for heavyweight red chips such as China Mobile and CNOOC to float A shares, analysts said. On the mainland, red chips are treated as foreign companies and regulators have to clear legal and regulatory hurdles before giving them the green light to sell shares. A clutch of red chips including China Mobile have shown keen interest to list on the Shanghai exchange, claiming that mainland investors could profit from their growth as they raise more yuan funds for expansion. The CSRC originally hoped to allow a first red chip to float A shares last year but the bearish market forced the regulator and the companies to put off the plan. It was until recently when the State Council endorsed a blueprint to build Shanghai into a global financial hub that talk of the red chips' return resurfaced. The mainland also plans to set up a growth enterprise market. CSRC chairman Shang Fulin was quoted by official newspapers yesterday as saying that his agency would speed up preparations for the market. Sichuan Expressway would be the fourth company to sell A shares after the suspension, following on the heels of three small-cap firms, which were allowed to raise funds on the SME board at the Shenzhen exchange. The CSRC was said to pick either China State Construction Engineering or Everbright Securities to spearhead the listing resumption. But it was battered by fears of a liquidity drain since the two firms will launch multibillion yuan share offers. China State Construction is expected to raise more than 40 billion yuan while Everbright seeks 11.5 billion yuan in proceeds. 'The regulator's intention is obvious in its selection of IPOs,' said TX Investment Consulting analyst Qiu Yanying. 'Presently, the regulator is making efforts to sustain the rally.' A-share express Sichuan Expressway is expected to receive approval to float 500 million shares on the Shanghai stock exchange soon to raise 1.4 billion yuan Other Hong Kong-listed firms seeking a flotation on the A-share market: Lenovo Group Denway Motors China Mobile CNOOC HSBC Holdings Citic Pacific Hang Seng Bank Bank of East Asia China Merchants Holdings (International) Guangzhou R&F Properties