PETALING JAYA: Genting Bhd
has proposed a renounceable rights issue of new ordinary shares aimed at raising gross proceeds of RM1.25bil.
The corporate exercise will be conducted on a full subscription basis to strengthen the Group's capital structure and liquidity. The issue price, entitlement basis, and entitlement date have not yet been fixed.
In a filing with Bursa Malaysia, Genting noted that the Board intends to fix the issue price at a discount of between 25% and 30% to the theoretical ex-rights price, based on the 5-day volume-weighted average price preceding the price-fixing date.
RM800mil or 64% of the money raised will be used to repay existing borrowings within 12 months. This step is expected to generate interest savings of RM41.3mil annually, the filing noted.
Another RM429.5mil or 34.4% will be allocated for general working capital, operational needs, and corporate funding over the next 12 months.
The exercise is backed by irrevocable undertakings from major shareholders Kien Huat Realty Sdn Bhd, Kien Huat International Ltd and Datuk Lim Keong Hui. Together, they have pledged to subscribe in full to their pro-rata entitlements, representing 45.1% of the target proceeds (RM563.8mil).
The remaining open portion will be fully underwritten. The exercise enables Genting to reduce its total debt, which reached RM47.5bil as of June 2026, and improve its gearing from 0.51 times to 0.46 times without incurring additional interest burdens or diluting supportive existing shareholders.
The corporate exercise is targeted for completion in the first quarter of 2027.
