Genting Berhad has proposed a RM1.25bn ($306m) renounceable rights issue, with most of the proceeds intended to reduce borrowings as the Malaysian gaming group continues to fund its wider resort portfolio.
A 9 October filing to Bursa Malaysia sets aside RM800m, or 64% of the proposed fundraising, to repay existing debt within 12 months of completion.
Genting estimates that the repayment would save RM41.3m in annual interest costs. Another RM429.5m is earmarked for general working capital, with the remainder covering the costs of the issue.
The price, entitlement ratio and record date have yet to be fixed. Genting intends to price the shares at a 25% to 30% discount to the theoretical ex-rights price, calculated using a five-day volume-weighted average.
The proposal needs shareholder and Bursa Malaysia approval and Genting aims to complete it in the first quarter of 2027.
Kien Huat Realty, Kien Huat International and Lim Keong Hui have undertaken to subscribe for their entitlements. Together, those commitments represent 45.1% of the target proceeds, or RM563.8m. The remaining shares are expected to be underwritten.
The announcement drew an immediate market response. Genting shares fell as much as 17% to RM1.56 in early trading on 12 October, their sharpest decline since 1998.
Analysts cited potential earnings-per-share dilution and questioned how much the projected interest saving would offset it. The fall was an intraday move, rather than a closing price.
The fundraising follows a second quarter in which Genting's revenue rose 14% year-on-year to RM7.75bn. For the three months ended 30 June 2026, adjusted EBITDA was RM2.12bn and the net loss attributable to shareholders was RM27.1m.
Genting operates gaming properties across Malaysia, Singapore, the United States and the United Kingdom, alongside non-gaming businesses. Its expansion programme includes work at Resorts World New York City after full casino operations began there in April.
The rights proposal places the cost of that investment and the group's debt position in sharper focus for existing shareholders.
In February, Genting's 2025 results reported a decline in full-year adjusted EBITDA despite stable revenue, providing earlier context for the group's current focus on its balance sheet.
Genting's board did not declare an interim dividend for the second quarter of 2026, citing its focus on reducing debt
