The company is in the process of an internal restructuring ahead of the listing and hopes to submit the application to the Hong Kong stock exchange soon.
It will identify itself as a red-chip company to proceed with the listing, instead of a H-share firm, one banker said.
Red-chip companies refer to firms incorporated outside the mainland and listed in Hong Kong.
The firm initially hoped to raise at least HK$2.34 billion, but raised its target recently in an attempt to secure enough funding for future expansion, said a banker familiar with the transaction.
The banker added that the proceeds will help the company double its production capacity in a short time, enabling it to tap the international market at a faster pace.
The company has hired China International Capital Corporation as sponsor and financial adviser to assist with its internal restructuring ahead of the listing.
US investment bank JPMorgan will be the joint sponsor.
The deal marks one of the significant initial public offerings in the second half competing for fresh cash with several mainland financial institutions.
Two mainland lenders, China Merchants Banks and Industrial and Commercial Bank of China, aim to raise up to US$14 billion (HK$109.2 bilion) before the end of the year.
The mainland's leading insurance company, China Pacific Insurance (Group), is also eyeing an initial public offering to raise at least HK$7.8 billion on the local bourse as early as the third quarter of the year, bankers said.
The vehicle maker manufactures heavy duty trucks and other hardware and sells its products both in China and internationally.
Based in Shandong province, the truckmaker reached sales of 45,000 vehicles last year, accounting for around 20 percent of the domestic market.
It aims to sell 60,000 units this year and 125,000 by 2010.
It was previously the majority shareholder and largest customer of Hong Kong-listed diesel engine maker Weichai Power, the leader in the sector, but their relationship soured after the company sold its 23.53 equity interest in Weichai Power to the Shandong government in March.
The two ended their cooperation the beginning of this year after Weichai Power learned that China National Heavy Duty Truck had turned to its rival, Hangzhou Motor Engine Factory.
Hangzhou Motor is a mainland diesel engine manufacturer that is wholly owned by China National Heavy Duty Truck.
China National Heavy Duty Truck accounted for 30 percent of Weichai Power's total sales last year. Shandong- based Weichai Power has 80 percent of the mainland's heavy-duty engine market.