Oct. 11 (Bloomberg) -- Shanghai Zhenhua Port Machinery Co., maker of most of the world's quayside cranes, may raise 3.65 billion yuan ($486 million) selling new shares to fund production expansion and enlarge cash reserves.

The company will start selling as many as 200 million shares on Oct. 15 in Shanghai at 29.08 yuan each, it said in a statement to the city's stock exchange today. That's 5 percent lower than the company's closing share price of 30.59 yuan yesterday.

Zhenhua said it will use the money to build crane and component production sites near Shanghai, adding about 12 billion yuan to its annual sales. The company, which makes about 70 percent of the world's container cranes, is expanding its production base to meet rising demand from ports and shippers as trade increases.

The company's shares have risen 160 percent this year, compared with a 187 million gain in the country's China's benchmark CSI 300 Index.

To contact the reporter on this story: Jiang Jianguo in Shanghai at jjiang@bloomberg.net

Last Updated: October 10, 2007 20:08 EDT