CNR plans $1.13b rights issue

China CNR Corp Ltd, the nation's No 2 train maker, proposed on Wednesday a rights issue of 2.5 new shares for every 10 shares held to raise up to 7.1 billion yuan ($1.13 billion) to invest in high-speed train projects and technology research.

Under the proposal, the company will issue 2.08 billion Shanghai-listed A shares at 3.42 yuan each, it said in a statement to the Shanghai stock exchange.

The subscription price for the A shares represents a 24.6 percent discount to the stock's close of 4.54 yuan on Tuesday.

Last August, CNR recalled 54 of its bullet trains that were used on the new Beijing-Shanghai high-speed rail line after the service suffered a series of disruptions, which caused its shares to plunge.

China International Capital Corp (CICC) and UBS Securities are lead underwriters for the rights issue, the company said.