Genting seeks RM1.25 billion through rights issue
RM800 million would go towards repaying borrowings, while the rest would fund working capital. Completion is expected in the first quarter of 2027.
Genting Bhd has proposed a renounceable rights issue with a fundraising target of RM1.25 billion, according to its bourse filing. The gaming, leisure and hospitality group plans to use the proceeds for debt repayment and working capital.
Of the proceeds, RM800 million is earmarked for borrowings falling due within 12 months after completion. Genting expects the repayment to save RM41.3 million in annual interest, based on a 5.16% weighted average annual rate for short-term borrowings as at June 30, 2026.
An illustrative price of RM1.30 per rights share underpins the fundraising target. The final subscription price will be 25% to 30% below the theoretical ex-rights price, which will be calculated from the shares’ volume-weighted average price over the five days preceding the price-fixing date.
Subscription commitments from Kien Huat Realty Sdn Bhd, Kien Huat International Ltd and Datuk Indera Lim Keong Hui cover 45.1% of the proposed issue. They have each undertaken to subscribe for their entitlements.
Kien Huat Realty, a private investment vehicle belonging to Genting executive chairman Tan Sri Lim Kok Thay, has a 43.82% stake in Genting. Kien Huat International holds 1.25%, while Lim Keong Hui owns 0.03%.
Genting intends to achieve full subscription and said it would arrange underwriting for the portion without subscription undertakings. It expects those arrangements to be ready before pricing is finalised.
Shareholder approval is required at an extraordinary general meeting that will be convened. The exercise is expected to conclude in the first quarter of 2027, with AmInvestment Bank Bhd serving as principal adviser.
