Troubled Internet and telecommunications firm Renren Holdings has proposed a one-for-one rights issue to raise about HK$10 million to HK$11 million. The company plans to issue 620 million to 675 million rights shares at 1.8 HK cents per share - a discount of 43.75 per cent to the closing price of 3.2 HK cents on February 20, the last trading day before its shares were suspended. Of the money raised, HK$2 million would be used to repay part of HK$5.7 million owed to GE Capital. Renren shares fell sharply after the announcement and closed at 2.1 HK cents yesterday, down by 34.38 per cent. Since June 2001, Renren has raised about HK$173.7 million through three share placements and one convertible bond issue. Renren said it had no further plans to raise funds this year, but 'should any prospective investment plans or business opportunities arise in the future which require capital, the company may consider to fund such investments by equity financing instead of debt financing'. The company reported a loss of HK$53.7 million for the six months to June last year on HK$15.32 million in revenue. Renren said it was seeking investment opportunities in media and other businesses to diversify its existing telecoms operations. Last August, Renren proposed a 35-for-20 rights issue but it was not approved by shareholders.