China's Nanfang Space Navigation plans to raise 3.17 billion yuan ($482.4 million) through the issue of new shares, it said on Thursday.

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The company said it plans to issue a maximum of 275 million new shares and added that it would set aside 450 million yuan ($68.48 million) to shore up its capital.

The money raised will be used to expand its production capacity, increase its research and development capabilities and to boost its equity holding in a Jiangsu-based new energy company, Nanfang said in a statement.

Nanfang manufactures aero-engine control system products. It also manufactures and sells motorcycles and motorcycles engines, civil aircraft components and automobile components.