This article first appeared in The Edge Malaysia Weekly on October 19, 2026 - October 25, 2026

GENTING Bhd (KL:GENTING) made a cash call on Oct 9 to raise RM1.25 billion — 53 years after its first one.

The conglomerate, which was listed in 1971, called for a rights issue in 1973.

At that time, Genting’s call for more cash from shareholders was acceptable. It was a period in which the group was still building the infrastructure to turn the casino into a holiday resort to cater for both tourists and high rollers.

The Genting Highlands Hotel (now known as Genting Skyworld Hotel), the first hotel in the highlands, was among the infrastructure being built. Since then, the group had never asked for more money from shareholders, until recently.

The current proposed rights issue, which requires minority shareholders’ approval, has not gone down well with investors, although those shares will be issued at a discount of up to 30% to the market price.

Based on last Friday’s closing of RM1.45, Genting’s market capitalisation stood at RM5.58 billion. The conglomerate’s hopes of becoming a constituent of the FBM KLCI 50 may have been dashed, as it was ranked 70th by market capitalisation.

Shareholders seldom welcome cash calls because of their dilutive effect. In Genting’s case, the rights issue has renewed investor concerns over the conglomerate’s hefty RM45.3 billion debt burden and the prospect of further fundraising exercises.

“No further equity fundraising is currently planned by the company,” says Genting.

Its debt swelled after it invested US$4.5 billion to build Resorts World Las Vegas (RWLV), a venture that has yet to deliver the returns hoped for.

Proceeds from the rights issue will go towards reducing debt incurred more than a decade ago, around the time construction of RWLV began.

In reply to questions from The Edge, Genting says although the company sits on huge cash and debts, the bulk of it is at the subsidiary level. It explains why a fundraising was needed to reduce borrowings taken more than 10 years ago.

The Edge: Why does Genting need a rights issue when it already holds more than RM17 billion in cash?

Genting: As with its debt, most of the group’s cash is held at its subsidiaries to meet their respective operating, corporate and capital expenditure requirements. The rights issue is intended to strengthen Genting’s balance sheet and financial flexibility.

Why is Genting raising just RM1.25 billion through a rights issue, with RM800 million earmarked for debt repayment, when its borrowings stand at roughly RM45 billion?

Most of the group’s debt sits at its operating subsidiaries rather than at the corporate level.

Please refer to our earlier response to Question 1. The size of the rights issue was determined after taking into consideration Genting’s internal cash resources, upcoming debt maturities, leverage and credit profile, while balancing the interests of shareholders, including the potential dilutive impact of a larger equity fundraising.

Genting had stated before that most of its debt was at the operating level. Can the company please clarify how much debt is at the respective operating levels and what is the amount accrued to Genting, the company itself?

The group’s total borrowings stood at RM45.3 billion as at June 30, 2026, of which just over 10% was attributable to Genting (the company). The balance was incurred by the subsidiaries for their respective operational, funding and capital expenditure requirements.

Is the fundraising due to borrowings taken by Genting when it undertook a mandatory general offer on Genting Malaysia?

Most of Genting’s borrowings maturing in 2027 were incurred more than 10 years ago. The rights issue forms part of Genting’s proactive capital management strategy to deleverage and strengthen its credit profile. Proceeds from the rights issue, together with internal cash resources, will be used to repay a portion of these borrowings, reducing reliance on debt-funded refinancing.

What is Genting’s cash position at the corporate level, and how much cash is held by its operating subsidiaries?

As at Dec 31, 2025, Genting had cash and cash equivalents of about RM1.3 billion at the company level. Most of the group’s cash balances were held at the operating subsidiary level and are earmarked for their respective operational, debt servicing and capital expenditure needs.

Will there be future rounds of fundraising, considering the outstanding debt of close to RM44 billion?

No further equity fundraising is currently planned by the company.

Why not sell non-core assets to reduce debt instead of pursuing a rights issue that has spooked Genting’s minority shareholders?

The group continues to actively evaluate opportunities to optimise its asset portfolio and monetise non-core assets and/or businesses, as and when appropriate, to unlock value, improve capital efficiency and support its long-term strategic objectives. While asset monetisation initiatives are already underway, such transactions typically require time to execute and realise value. The rights issue enables the group to strengthen its balance sheet and address near-term funding objectives in a timely and prudent manner, while pursuing asset monetisation opportunities in parallel.

In the announcement of its proposed rights issue, Genting specified a discount to its share price. But its share price has fallen significantly since the announcement. Will this affect the proposed discount for the rights issue?

As stated in the company announcements, the board intends to fix the issue price at a discount ranging between 25% and 30% to the theoretical ex-rights price. The discount range was arrived at after taking into account numerous factors set out in the announcements and is in line with discount levels adopted in other rights issue transactions. The recent share price movement is not expected to affect the intended discount range. 

Read also:
Cover Story: Debt repayment looms for Genting
Cover Story: As the group expanded, so too did its debt burden