China Shipbuilding Industry Corp (CSIC) has proposed to raise up to RMB3.9bn ($586.3m) from the sale of a maximum of 718m shares in an attempt to lower its debts.

The shares are proposed to be sold at a price of RMB5.43 per share to three investors, including its controlling shareholder.

CSIC said in a statement to the Shanghai Stock Exchange that the entire RMB3.9bn to be raised will go toward repaying debts.

Amid the downturn in the shipbuilding sector, CSIC has initiated an internal reorganisation byconsolidating its various subsidiary yards so as to utilise resources more efficiently and reduce operating costs.