Genting Prices Rights Issue At $0.60/Share

Source : The Business Times, August 15, 2007

SINGAPORE - Genting International, a gambling firm, has priced shares in a $2.2 billion (US$1.45 billion) rights issue aimed at raising funds to build a casino in Singapore at $0.60 each, a 23 per cent discount to Tuesday's closing share price, the company said late on Tuesday.

Singapore-listed Genting had announced plans in June to give existing investors the right to buy three new shares for every five held.

Despite the discount, Genting stock was up 4.5 per cent at $0.81 in early trade on Wednesday, while the broader market was 2 per cent lower. The issue price of the new shares is a 38 per cent discount to the $0.97 closing share price on June 28, the day the capital raising was announced.

Genting International and cruise operator Star Cruises, both part of the Malaysian gambling and leisure group Genting Bhd, in December won a bid to build and run Singapore's second integrated-resort (IR).

The IR, which will include a Universal Studios theme park and other attractions, is expected to cost US$3.4 billion and is part of Singapore's plan to attract more tourists. -- REUTERS