Beijing Yanjing Brewery is to issue between 85m and 110m new shares with a value of at least Y17.88 (US$2.61) per share, after receiving approval from the China Securities Regulatory Commission, local press reported.

The brewer announced its plans to raise new capital in January. Controlling shareholder the Yanjing Beer Group will buy at least 50% of the issue, with a lock-up period of 36 months, the company said.

The funds - expected to total around CNY17.96bn (US$2.49bn) - will be used to build 11 new facilities, including a raw material processing plant in Xinjiang and in Inner Mongolia, local reports said.

Beijing Yanjing is the last remaining major independent brewer in China. Speculation over the last couple of years has linked InBev to the company, although nothing has materialised as yet between the two.