0300 GMT [Dow Jones] Genting Singapore (G13.SG) heads lower on dilution impact from rights issue; shares down 5.9% at S$1.12 with order book quotes suggesting near-term support at S$1.10. Shares trading just below theoretical ex-rights price of S$1.125, trader says this is likely due to recent run up in shares, "there was a lot of froth there, so they needed a bit of a pause anyway." Gaming company to raise up to S$1.63 billion in 1-for-5 rights issue at $0.80/share. "Given the recent run-up in its share price, we believe it may be an opportune time to raise some cash from the market to add to its kitty," says OCBC Investment Research. Adds, concerns over cost overruns at Resorts World Sentosa (RWS) and payment of loan obligations likely overdone. "Instead, we see the move as more of an insurance, should there be any hiccups in the global financial system again." Maintains Hold, lifts target to S$1.05 from S$0.85 to reflect possibility of RWS opening before end 2009 and more upbeat regional economic outlook.
Dow Jones Newswires
September 09, 2009 23:00 ET (03:00 GMT)
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