China's national securities regulator has approved the initial public offering (IPO) application from a Zhejiang-based pesticide maker.

Zhejiang Xinnong Chemical Co., specializing in pesticide research, development and production, will raise no more than 500 million yuan (about 72 million U.S. dollars) in the A-share market, according to the China Securities Regulatory Commission (CSRC).

The company and its underwriter will confirm IPO date and publish its prospectus following discussion with the stock exchange.

Under the current IPO system, new shares are subject to the approval from the CSRC. China is gradually switching from an approval-based IPO system to one based on registration.