Changzhou Youon Public Bicycle System is set to become the first bicycle-sharing company to go public in China's domestic market, providing a test case for the country's fast-growing industry.

Youon, backed by Ant Financial, has received written approval from the China Securities Regulatory Commission for a proposed Shanghai IPO of 598 million yuan ($87 million). The firm is looking to start premarketing for the float later this week, according to a source familiar with the situation. The move comes amid a fundraising boom in China's bike-sharing companies in the past several months.