Genting shares plunge to 25-year low on capital-raising announcement

Genting Malaysia Bhd's shares experienced their most severe selloff in over two decades on Monday after the company unveiled plans to raise fresh capital through a rights offering.

The stock fell to a low of RM1.56 during intraday trading, representing a 17% decline from previous close levels. The sharp correction reflects investor concerns about the dilutive impact of the proposed renounceable rights issue, which will inject approximately RM1.25 billion into the company's coffers.

The rights offering allows existing shareholders to subscribe to new shares in proportion to their current holdings, with the option to renounce their rights if they choose not to participate. Such capital-raising exercises typically pressure share prices in the near term due to anticipated equity dilution.

The leisure and gaming conglomerate, which operates casinos, hotels and resorts across Malaysia and internationally, has not yet disclosed detailed terms of the rights issue or the intended use of the capital raised. Analysts and investors will be monitoring forthcoming announcements for clarity on allocation of funds and the offering's timing.