Genting Berhad Proposes US$306 Million Rights Issue Backed by Lim Family to Address Debt Maturities

Genting Berhad has proposed a renounceable rights issue of new ordinary shares to raise MYR1.25 billion (US$306 million) in gross proceeds. The Malaysian gaming company plans to direct the majority toward debt repayment due within the next 12 months, with the balance allocated to working capital.

The family of group chairman Lim Kok Thay has provided irrevocable undertakings to subscribe to their full entitlements under the rights issue. These commitments cover 45% of the proposed issuance through Kien Huat Realty Sdn Bhd (43.82%), Kien Huat International Ltd (1.25%) and Lim Keong Hui (0.03%). Arrangements to underwrite the remaining portion have yet to be finalized.

Allocation Details and Interest Savings

In a filing reported by Inside Asian Gaming, Genting intends to allocate MYR800 million (US$196 million) of the proceeds to repay borrowings. Based on the weighted average interest rate as of 30 June 2026, this is expected to generate annual interest savings of MYR41.3 million (US$10.1 million).

The company cited persistent uncertainties in global financing, stating: “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.” It added that these conditions have heightened volatility in financial markets and could affect funding costs, liquidity and access to capital required for maturing debts.

The balance of the proceeds breaks down to MYR429.5 million (US$105 million) for working capital and MYR20.5 million (US$5.0 million) for rights issue expenses.

Recent Financial Pressures and Capital Projects

The rights issue follows Genting’s full-year 2025 loss attributable to shareholders and continued bottom-line pressure in the first half of 2026. The company last year lifted its stake in Genting Malaysia from 49.36% to 73.13% via a voluntary takeover offer at a cost of more than MYR3 billion (US$734 million).

It is also committed to two substantial developments: the US$5.5 billion (US$1.35 billion) Resorts World New York City conversion and the US$5 billion (US$1.22 billion) expansion of Singapore’s Resorts World Sentosa.

This rights issue supplies a direct mechanism for Genting to handle near-term debt obligations and maintain capital structure flexibility as market conditions evolve. Execution will turn on securing underwriting for the non-family portion and realizing the projected interest savings while advancing the ongoing projects.

Reporting: Inside Asian Gaming

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