Japan's Sharp Corp <6753.T> plans to issue up to 450 million new shares in a public offering, part of a plan to raise capital that is set to be approved by the company's board early this week, people with knowledge of the discussions said on Tuesday.

The Osaka-based company, which supplies display panels for Apple Inc's iPhone, plans to raise up to $1.7 billion in order to shore up its finances, sources have said.

That will include raising about 150 billion yen ($1.52 billion) through a public share offering and about 20 billion yen through a third-party allotment. The third-party share placement would be made to companies that have deep business ties to Sharp, including Lixil Group <5938.T>, Makita Corp <6586.T> and Denso Corp <6902.T>, according to the sources.

Sharp had no immediate comment. ($1 = 98.7900 Japanese yen)

(Reporting by Nobuhiro Kubo and Reiji Murai; Writing by Kevin Krolicki; Editing by Shinichi Saoshiro)