Kuala Lumpur:Genting Bhd's shares experienced a significant decline on Monday, leading Bursa Malaysia to suspend intraday short-selling (IDSS) of the stock for the remainder of the day.

According to BERNAMA News Agency, by 1126 am, the shares had decreased by 30 sen or 15.97%, settling at RM1.58. The suspension was triggered because the last traded price of the Approved Securities fell more than 15% or 15 sen from the reference price.

Bursa Malaysia stated that short selling under IDSS is set to resume tomorrow at 0830 am. The drop in Genting's share price followed the company's announcement of its plan to raise RM1.25 billion through a rights issue. The funds are intended to repay RM800 million of short-term borrowings, with the remaining amount earmarked for working capital.

CIMB Securities Sdn Bhd noted in a report that assuming a one-for-four rights issue priced at RM1.30 per share, the theoretical ex-rights price stands at RM1.75, based on the five-day volume-weighted average price up to last Friday. The firm maintained a 'hold' call on Genting, with an unchanged target price pending the finalization of the rights issue details, and anticipated a negative investor reaction.