Key facts
- Genting shares fell 17% to 1.56 ringgit, the largest drop since 1998.
Genting shares tumble by most in 28 years on rights issue plan
IN SHORT
Shares in Malaysia's Genting plunged as much as 17% on Friday, marking their steepest decline in 28 years. The leisure group announced plans to raise approximately 1.25 billion ringgit (US$306 million) through a renounceable rights issue, with the issue price set at a discount of 25% to 30%.
Key Numbers
1.25 billion ringgitrights issue size
US$306 millionrights issue size
17%share price decline
1.56 ringgitGenting share price
28 yearslongest share decline period
25% to 30%rights issue discount range
Who's Involved
Genting
announced plans to raise 1.25 billion ringgit via rights issue
Lim Kok Thay
Malaysian billionaire controlling Genting
↳ Why This Matters
The significant drop in Genting's share price signals investor concern over the dilutionary impact of the rights issue and the company's financial strategy, potentially affecting its valuation and future growth prospects.