Anji Automotive Logistics Co, a unit of China's largest carmaker SAIC Motor Corp, has picked banks for an initial public offering that could raise at least $500 million, people with knowledge of the matter said.

The Shanghai-based logistics provider is working with China International Capital Corp, HSBC Holdings Plc and JPMorgan Chase & Co to arrange the share sale in Hong Kong, according to the sources. The offering could take place early next year, they added, asking not to be identified as the information is private.

Proceeds from the offering could help Anji benefit from growing vehicle demand in the world's biggest car market. China reported sales of 25 million automobiles last year, up 4.7 percent from the year before, according to the China Association of Automobile Manufacturers.

Anji is preparing a Hong Kong IPO amid the slowest start for new offerings in the city since 2013, according to data compiled by Bloomberg. Hong Kong first-time share sales have raised $4.2 billion this year, compared with $7.1 billion during the same period in 2015, the data show.

The logistics unit is studying the feasibility for an overseas listing, SAIC said in a statement to the Shanghai stock exchange last week, which didn't provide further information. Details aren't finalized and could still change, the people said. A spokesman for SAIC didn't immediately respond to calls seeking comment, while representatives for CICC, HSBC, JPMorgan declined to comment.