Genting To Allocate RM280 Mln From Rights Issue For Interest, Financing Costs
KUALA LUMPUR, Oct 14 (Bernama) -- Genting Bhd has earmarked RM280 million from its proposed RM1.25 billion renounceable rights issue to pay interest and other financing-related costs on the group’s borrowings and funding arrangements.
The group said in a stock filing exchange that the allocation forms part of the RM429.5 million set aside for working capital requirements. The remaining RM149.5 million will be used to meet general working capital requirements of the company and its unlisted subsidiaries, including employee-related costs, professional fees, regulatory and compliance charges, tax liabilities, as well as operating and administrative expenses.
Genting said the allocation was based on the group’s anticipated funding and operational requirements, adding that the amounts allocated to the various working capital components may be adjusted according to its operational, business and funding needs.
The filing was made in response to queries from Bursa Malaysia dated Oct 13, 2026, seeking clarification on the proposed rights issue.
On the proposed discount of between 25 per cent and 30 per cent to the theoretical ex-rights price (TERP), based on the five-day volume-weighted average price of Genting shares preceding the price-fixing date, the group said the range was determined following discussions with its principal adviser.
The considerations included the size of the proposed rights issue, prevailing market conditions, the historical trading performance and liquidity of Genting shares, discount levels adopted in previous rights issues, and underwriting appetite for the remaining open portion of the rights shares.
Genting said the discount was intended to make the rights shares more attractive, encourage shareholder participation, reward entitled shareholders for their continued support, facilitate a higher subscription level and improve the certainty of raising the targeted gross proceeds.
On Oct 9, Genting announced plans to raise RM1.25 billion through the proposed renounceable rights issue, with RM800 million earmarked for debt repayment and RM20.5 million for expenses related to the exercise.
-- BERNAMA