Genting Bhd has proposed a renounceable rights issue to raise about RM1.25 billion, with a substantial portion of the proceeds earmarked for debt repayment as part of the group’s deleveraging strategy.
The group said the rights issue will be undertaken on a full subscription basis, although the issue price, entitlement ratio and entitlement date have yet to be determined. And intends to price the rights shares at a 25% to 30% discount to the theoretical ex-rights price, based on the five-day volume-weighted average price of Genting shares preceding the price-fixing date.
Genting said the proposed exercise would allow it to raise equity funding without incurring additional interest expenses or principal repayment obligations associated with conventional borrowings or debt securities.
A substantial portion of the proceeds will be used to repay borrowings, which the group said would reduce gearing, strengthen liquidity and improve its credit profile and capital structure.
The exercise is also intended to help address upcoming debt maturities while preserving financial flexibility for working capital, debt servicing and operational requirements.
