Malaysia Airlines sees shares slump on rights issue

Malaysia Airlines sees shares slump on rights issue

Malaysian Airlines has seen share prices fall to a record low in Kuala Lumpur after the long-haul carrier announced plans to raise up to $1 billion in a rights issue.

Stock in the national flag-carrier fell 17 per cent to 84 sen, its lowest close since the shares began trading in 1987, according to data compiled by Bloomberg.

The carrier has slumped 35 per cent this year, compared with a five per cent advance in the benchmark FTSE Bursa Malaysia KLCI Index.

Malaysian Airlines is seeking funds to pare debts and to help pay for new fuel-efficient planes.

The carrier has yet to reveal the price or entitlement basis for the rights offer.

The carrier is also working on a turnaround plan as it contends with slower global travel and competition from budget carrier AirAsia.