Severn Valley Railway said it had raised £636,000 through the scheme and hopes to raise £2.5 million by October for the redevelopment of its Bridgnorth station.
Workmen have already been on site sinking foundations and the railway said there would be more activity early in the new year.
Share offer proceeds will provide improved visitor facilities at the station and conserve the existing station, which was built in 1862.
It will be the railway's most ambitious restoration and development in its 51-year history.
A busy year packed with sell-out events and world-famous locomotives – alongside the share offer – will be rounded-off at a railway into the new year.
The Festive Season Services, running from Boxing Day to January 2 at the Severn Valley Railway, allow passengers to stop at any of the railway's six stations or explore the Engine House Visitor Centre.
Passengers do not need to book in advance for the services before the railway closes for essential maintenance.
Clare Gibbard, from SVR, said: "Our festive season services traditionally mark the final passenger services of the year and are the ideal way for people to relax and enjoy some quality time after Christmas, taking a leisurely ride through the countryside in the warmth of our carriages."
The services mark the end of a record-breaking year when more than 45,000 people flocked to see world-famous Flying Scotsman and Tornado.