Genting Bhd Shares Plummet After RM1.25 Billion Rights Issue
Genting Bhd shares fell nearly 16 percent on Monday after the company announced a RM1.25 billion rights issue to repay debt and fund working capital.
Shares of Genting Bhd plummeted 15.97 percent to RM1.58 on Monday following the company's announcement of a plan to raise RM1.25 billion through a rights issue. The company intends to allocate RM800 million of the proceeds to repay short-term borrowings, while the remaining funds will be used for working capital.
Bursa Malaysia suspended intraday short-selling (IDSS) of the stock for the remainder of the day because the price dropped more than 15 percent from the reference price. The exchange stated that short selling under IDSS would resume on Tuesday at 8:30 am.
CIMB Securities Sdn Bhd maintained a hold call on the stock while awaiting final details of the rights issue. The firm noted that it anticipated a negative reaction from investors regarding the capital raise.
