Genting chairman bought 422,500 shares: CIMB sees 17 percent dilution for Genting stock

Published on 10/20/2026 at 01:48 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Genting plans a MYR 1.25 billion rights issue to repay MYR 800 million. For Genting stock, borrowings reached MYR 45.30 billion in June.

Funding and leverage figures

Genting proposed a MYR 1.25 billion rights issue on October 9, 2026.
First-half 2026 revenue reached MYR 14.41 billion, while net profit fell to MYR 74.00 million.
Genting's market capitalization stood at MYR 5.60 billion on October 16, 2026.

Genting, MYL3182OO002, Illustration mit AI erstellt.

Genting (MYL3182OO002) chairman Lim Kok Thay's investment vehicle bought 422,500 shares on October 14 and 15, according to The Edge Malaysia on October 16, 2026. In an October 11 report cited by The Star, Maybank Investment Bank Research cut its target from MYR 2.88 to MYR 1.49 and downgraded Genting to sell.

Three dates changed the picture

On June 30, 2026, Genting carried MYR 45.30 billion of borrowings after reporting a second-quarter loss. On October 9, the group announced a proposed MYR 1.25 billion renounceable rights issue. On October 14 and October 15, Lim's investment vehicle bought 422,500 shares at MYR 1.4940 and MYR 1.3919, respectively, as reported by The Edge Malaysia.

What does the rights issue change?

Genting plans to direct MYR 800 million of the proceeds toward borrowings and MYR 429.50 million toward working capital. The Star reported that the company expects annual interest savings of MYR 41.30 million, based on a 5.16 percent weighted average interest rate, while CIMB Research estimated core earnings-per-share dilution of 17 percent to 18 percent in fiscal years 2027 and 2028.

The financing pressure sits beside a weaker profit trend. According to MarketWatch, revenue rose 8.40 percent to MYR 14.41 billion in the first half of 2026, but net profit fell to MYR 74.00 million from MYR 248.10 million a year earlier. Total debt, including lease liabilities, stood at MYR 47.50 billion at the end of June.

Rights issue moves toward 2027

The proposed exercise is expected to be completed in the first quarter of 2027, subject to shareholder and regulatory approvals, according to MarketWatch. The issue price is expected to carry a 25 percent to 30 percent discount to the theoretical ex-rights price.

Market value after the cash call

Genting's market capitalization stood at MYR 5.60 billion on October 16, 2026. The combination of debt repayment, possible dilution and weaker first-half profit puts funding execution alongside operating recovery as the central stock question.