China CNR Corp, the country’s second-biggest maker of railway carriages, has scrapped plans for a Rmb10.2 billion $1.6 billion private placement and will instead raise Rmb7.1 billion $1.1 billion through a rights issue.
The company will use the funds to pay for research and development of carriages for high-speed trains. CNR will offer up to three rights shares for every 10 existing A-shares, which will result in the issue of approximately 2.49 billion new shares, according to a stock filing to the Shanghai Stock Exchange.
The company didn’t give details on the subscription price but the steep drop of 43% year-to-date in the share prices of CNR...
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