Genting shares slump to 2007 lows after a rights issue plan, even as the KLCI edges up
Genting Berhad proposed a renounceable rights issue to raise about RM1.25 billion, with RM800 million earmarked to repay borrowings within 12 months (The Star, BusinessToday, 9 Oct). The filing said the issue price would be set at a 25% to 30% discount to the theoretical ex-rights price, and major shareholders have given irrevocable undertakings. On Monday the shares fell sharply: The Edge’s headline said 17% to 2007 lows, the Business Times said the biggest drop since 1998, and BusinessToday listed Genting among the biggest losers. The Star’s wrap gave different percentages for Genting Berhad and Genting Malaysia that DailyDrop could not reconcile.
Genting is one of Bursa’s best-known stocks, and a discounted share sale shows how much cash the group needs. A big drop in a heavyweight can hide a rising index.
If you hold Genting shares, the rights issue gives you the option, not the obligation, to buy new shares; read the circular for dates and the final price. Index funds may feel only part of the fall.
Supporters say cutting debt makes the group sturdier, and big shareholders are backing the issue.
Sceptics say a deep discount dilutes existing holders and signals pressure on the balance sheet.
The fall is real; its exact size depends on which Genting company and which source, so DailyDrop quotes none. Watch the final issue price and the entitlement dates.
DailyDrop Malaysia edition No. 9 · Morning · TUE., OCT. 13, 2026