Chinese rail maker CNR has won the regulatory approval for its initial public offering (IPO) in Shanghai.

Approval came from the country’s stock regulator China Securities Regulatory Commission.

The company is planning to issue three billion shares to fund projects worth CNY6.436bn ($942m).

The company has not revealed how much it aims to raise from the listing but says it will use the proceeds in excess of CNY6.436bn as working capital.

The money will be used to upgrade technology for train manufacturing, including high-speed trains, according to the company.

The company has hired China International Capital (CICC), Huatai Securities and Huarong Securities as underwriters and financial consultants for the planned IPO.

The decision comes on the back of the country’s CNY5t plan to expand its railway network to 120,000km by 2020.

The company’s rival China South Locomotive & Rolling Stock is already listed on the Shanghai and Hong Kong stock exchanges.