0021 GMT [Dow Jones] Genting Singapore (G13.SG) may slip when trading halt lifted at market open as investors price in dilution from rights issue. But given strong demand for shares recently, downside may be limited. Support tipped at theoretical ex-rights price of S$1.125; shares halted yesterday, closed +1.7% at S$1.19 Tuesday. Gaming company, which is set to open casino-resort on Singapore's Sentosa island early next year, announces it will raise up to S$1.63 billion in 1-for-5 rights issue priced at S$0.80/share. Company says about 60% of net proceeds will be used for future strategic opportunities, rest for working capital. UBS says casino project "fully funded," believes cash more likely earmarked for new investments outside Singapore. Maintains Sell call with unchanged S$0.82 price target. JPMorgan trims target price to S$1.15 from S$1.20 to factor in increase in number of shares. Maintains Overweight rating as says stock could trade up to S$1.95 in bullish case for new casino.
Dow Jones Newswires
September 09, 2009 20:21 ET (00:21 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
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