The company intends to funnel 800 million ringgit of the proceeds into debt repayment, with the remainder earmarked for working capital and transaction expenses. By retiring these loans, Genting expects to shed approximately 41.3 million ringgit in annual interest payments, calculated against its current weighted average rate of 5.16%. The offering will be priced at a 25% to 30% discount to the theoretical ex-rights share price, providing an incentive for existing investors to participate.
In section Market Quotes
Genting Targets 1.25 Billion Ringgit Rights Issue to Trim Debt
Facing a sharp decline in net profit and a 47.5 billion ringgit debt load, Kuala Lumpur-based Genting is turning to its shareholders to stabilize its balance sheet. The conglomerate plans to raise 1.25 billion ringgit through a renounceable rights issue, aiming to slash interest costs by over 40 million ringgit annually.
Major stakeholders, including Kien Huat Realty, Kien Huat International, and Indera Lim Keong Hui, have already committed to their full entitlements, representing 563.8 million ringgit in guaranteed capital. Genting is currently arranging underwriting for the balance of the issue. This move follows a challenging first half of 2026, where net profit plummeted to 74 million ringgit from 248.1 million ringgit a year prior, despite an 8.4% rise in revenue to 14.41 billion ringgit. Pending shareholder and regulatory approval, the company expects to finalize the capital injection by the first quarter of 2027.
Comments (0)
No comments yet. Be the first!