Shares in Malaysia’s Genting tumble by most in 28 years
The gaming giant, which is grappling with mounting debt and falling profitability, announced fundraising plans through a rights issue
The stock fell as much as 17 per cent to 1.56 ringgit, the biggest decline since 1998.
The issue price would be fixed at a discount ranging between 25 and 30 per cent, Genting said in a bourse filing on Friday, adding that proceeds raised would be used to repay its borrowings and fund working capital.
The fundraising comes as Genting grapples with mounting debt and falling profitability. The gaming giant in August reported a net loss for the second quarter, while total borrowings rose to 45.3 billion ringgit as of end June.
“Our scenario analysis reveals not only minimal interest savings and de-gearing but also marked earnings-per-share and book value per share dilution,” Samuel Yin, an analyst at Maybank Investment Bank, wrote in a report.
