Genting falls on Genting S'pore rights share plan

GENTING BHD's share price fell the most in more than a month during afternoon trade on Sept 9 after Genting Singapore announced its rights issue to raise S$1.63 billion at 80 cents each or 32.8% below the previous day's closing price.

It closed 30 sen lower at RM6.87, the most since July 29. There were 16.4 million shares done.

Genting Singapore's proposed rights issue involves up to 2.04 billion new shares of 80 cents each and it would be on the basis of one rights shares for every five held.

"The rights issue is expected to raise gross proceeds of up to S$1.63 billion and is undertaken to pro-actively strengthen the balance sheet of the company and its subsidiaries (the group), enhance its financial flexibility and competitive position and facilitate future business expansion," Genting Singapore said in a statement to the Singapore exchange.

Genting Singapore, which is about 54% held by Genting Bhd, is building one of the city-state's two integrated casino resorts. It is also the largest casino operator in the UK.

Genting Singapore will resume trading on Thursday, Sept 10.

I really think it is a good time to sell some of my genting-co. I still remember that airaisa-ce started to fall like hell after airasia announced right issues on 4th August 2009. Maybe the same will happen to my genting-co.

Ok, good luck in your trading.

GOon