Is GENTING in a Financial Crisis? Genting’s Historic First Rights Issue

26th Community Meetup RSVP. Genting plans to raise RM1.25 billion to repay borrowings and fund working capital, but massive standing debt, shareholder dilution, and rising refinancing costs are concerning, especially about the company’s capital allocation and financial flexibility.

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DoitDuit | Your Investing Friend & Ren 🗿
October 21, 2026

31 Oct 2026 Community Meetup @ Colabs Starling: Sharing session on the progress of AI infrastructure buildout in Malaysia and how to use AI for our investing research process. RSVP here: https://forms.gle/F5gPHzUDzULEHXqN7

After a very brief and short-lived rally leading up to the award of the New York Casino license, Genting has now fallen over 50% after announcing its plans to carry out a Rights Issue. Notably, this is the first time that Genting has ever carried out a Rights Issue (RI) in its history.

I generally view equity fundraising negatively, whether it be private placements, share issuances for acquisitions, or doing a Rights Issue, unless they’re done at an attractive price to justify the dilution.

In this case, the valuation when the Rights Issue was announced was around RM1.88, or about RM7.3 bil market cap, which puts it at the level of the 1998 financial crisis.

In this article, let’s go through the details of the Rights Issue, and I’ll share my thoughts about it at the end.

Key Points of the Rights Issue

The following points are taken from the announcement document directly.

From Genting’s Rights Issue Proposal

The main goal of this Rights Issue is to raise approximately RM1.25 bil in cash.

From Genting’s Rights Issue Proposal

To do this, the board intends to fix the issue price of the new rights shares at a 25-30% discount to the “theoretical ex-rights price” (TERP) based on the 5-day VWAP of GENTING shares preceding the price fixing date.

TERP is the calculated theoretical market price per share immediately after a rights issue, assuming 100% of the new shares offered are fully subscribed.

I will explain how to calculate TERP in case anyone is interested…

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