Malaysian gaming giant Genting Berhad has announced a proposed renounceable rights issue of new ordinary shares in the company, with the goal of raising MYR1.25 billion (US$306 million) in gross proceeds – primarily for the purpose of paying down debt and providing some working capital.
The family of group chairman Lim Kok Thay has provided irrevocable undertakings to subscribe to their full entitlements, comprising 45% of the proposed right issue, with the balance to be covered by underwriting arrangements that are yet to be put in place.
The proposed rights issue comes with Genting facing financial pressure after reporting a full-year 2025 loss attributable to shareholders and seeing its bottom line challenged during the first half of 2026. The company last year also significantly increased its stake in Genting Malaysia and has two major capex projects in the works including the US$5.5 billion Resorts World New York City conversion and the US$5 billion expansion of Singapore’s Resorts World Sentosa.
In a Friday filing, Genting said it intends to allocate MYR800 million (US$196 million) of the gross proceeds of the rights issue to the repayment of borrowings due within the next 12 months, which based on the weighted interest rate as of 30 June 2026 is expected to achieve potential annual interest savings of MYR41.3 million (US$10.1 million).
“The global financing environment continues to be characterized by uncertainties arising from evolving interest rate expectations, inflationary pressures and geopolitical developments, including ongoing international conflicts,” the company explained.
“These factors have contributed to heightened volatility in financial markets and may affect funding costs, liquidity conditions and the Group’s access to capital, which is required to address maturing debts over the next 12 months.
“In view of the above, the Group believes it is prudent to maintain financial flexibility in managing its funding requirements and capital structure. The proceeds of the proposed rights Issue will provide an avenue for the Group to proactively address upcoming debt maturities, optimize its debt profile and pursue refinancing opportunities on commercially reasonable terms as market conditions continue to evolve.”
Of the remaining funds to be raised, Genting said MYR429.5 million (US$105 million) will be utilized as working capital with MYR20.5 million (US$5.0 million) set aside for right issue expenses.
The Lim family entities that have provided irrevocable undertakings are Lim Kok Thay’s private investment Kien Huat Realty Sdn Bhd, which will subscribe to 43.82%, and Lim family vehicle Kien Huat International Ltd for 1.25%, while Lim’s eldest son Lim Keong Hui will subscribe to 0.03%.
As previously reported by Inside Asian Gaming, Genting Bhd last year lifted its interest in Genting Malaysia from 49.36% to 73.13% via a voluntary takeover offer. While it fell short of its ultimate goal of owning 75% of Genting Malaysia and taking it private, the series of transactions that enabled the greater slice of control is understood to have cost Genting Bhd more than MYR3 billion (US$734 million).
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