KUALA LUMPUR (Oct 9): Genting Bhd (KL:GENTING) plans to raise RM1.25 billion through a renounceable rights issue to repay maturing debt and fund working capital.
The gaming, leisure and hospitality group intends to allocate RM800 million of proceeds to repay borrowings due within 12 months of the completion of the proposed exercise, according to a bourse filing on Friday. The remaining proceeds will be used for working capital.
Based on the group’s weighted average interest rate of 5.16% per year on short-term borrowings as at June 30, 2026, the debt repayment is expected to generate annual interest savings of RM41.3 million, Genting said.
The proposed RM1.25 billion fundraising is based on an illustrative issue price of RM1.30 per rights share. The final price will be set at a discount of 25% to 30% to the theoretical ex-rights price, calculated using the five-day volume-weighted average price of Genting shares preceding the price-fixing date.
Genting Group had total borrowings of RM45.25 billion as at end-June 2026, comprising RM9.68 billion in short-term debt and RM35.58 billion in long-term borrowings. Interest rates on the group’s borrowings ranged from 3.88% to 8.45% per year.
The rights issue is intended to be fully subscribed. Kien Huat Realty Sdn Bhd, the private investment vehicle of Genting executive chairman Tan Sri Lim Kok Thay, Kien Huat International Ltd and Datuk Indera Lim Keong Hui have given undertakings to subscribe for their respective entitlements, representing a combined 45.1% of the proposed issue.
Kien Huat Realty owns 43.82% of Genting, while Kien Huat International and Lim Keong Hui hold 1.25% and 0.03%, respectively.
Genting said it would arrange underwriting for the remaining portion of the rights issue not covered by the undertakings, with the arrangements expected to be in place before the issue price is fixed.
The exercise is subject to shareholders' approval at an extraordinary general meeting to be convened and is expected to be completed in the first quarter of 2027. AmInvestment Bank Bhd is the principal adviser.
Genting shares rose four sen or 2.17% to close at RM1.88 on Friday, valuing the group at RM7.29 billion. The stock has declined 36.9% so far this year.