Genting Shares Drop 17% on Rights Issue Plan

Genting Bhd., a Malaysian leisure group, announced plans to raise 1.25 billion ringgit through a renounceable rights issue, triggering a sharp decline in its stock. The shares dropped as much as 17% to 1.56 ringgit, marking the biggest fall since 1998. The issue price will be set at a 25% to 30% discount, according to a filing with the stock exchange. The company stated that the funds will be used to repay debt and support working capital needs. The move comes amid pressure to strengthen its financial position after recent challenges in its core business segments.