Business · Markets · 2 hrs ago
Genting shares fall most in 28 years after rights issue plan
Genting Bhd.
is a leisure group controlled by Malaysian billionaire Lim Kok Thay.
Its shares fell by the most since 1998 after the company announced plans to raise about 1.25 billion ringgit, or $306 million.
It plans to raise the money through a renounceable rights issue.
In this kind of issue, existing shareholders are offered the right to buy new shares.
The plan is the stated reason for the sharp fall in the shares.
The money raised would go to the company, but the announcement does not say how it will be used.
The next step is for Genting to carry out the planned rights issue.
Genting shares fell as much as 17 per cent after the leisure group announced a planned rights issue to raise about 1.25 billion ringgit.
The decline was the stock’s largest in 28 years, dating back to 1998.
Genting said the issue price would be set at a discount of 25 to 30 per cent.
The company plans to use the proceeds to repay borrowings and fund working capital.
Genting reported a net loss in the second quarter, while its borrowings reached 45.3 billion ringgit at the end of June.
- Who
- Genting, the leisure group controlled by Malaysian billionaire Lim Kok Thay.
- What
- The company announced a planned renounceable rights issue to raise about 1.25 billion ringgit. Its shares fell as much as 17 per cent.
- When
- The plan was announced before the reports published on October 12, 2026; Genting said the details in a bourse filing on Friday.
- Where
- Genting shares fell; the articles do not state the exchange’s location.
- Why
- Genting plans to use the proceeds to repay borrowings and fund working capital.
This story does not have two clearly opposing sides.
Our scenario analysis reveals not only minimal interest savings and de-gearing but also marked earnings-per-share and book value per share dilution
Genting reported a net loss for the second quarter.
Genting’s total borrowings stood at 45.3 billion ringgit.
Genting said in a bourse filing that its rights issue price would be set at a discount of 25 to 30 per cent.
Genting shares fell as much as 17 per cent, their biggest decline since 1998, following the rights issue plan.
- Planned fundraising
- About 1.25 billion ringgit (US$306 million)
- Share decline
- As much as 17 per cent, to 1.56 ringgit
- Rights issue discount
- 25 to 30 per cent
- Use of proceeds
- Repay borrowings and fund working capital
- Total borrowings
- 45.3 billion ringgit at end June
Sources
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