KUALA LUMPUR (Sept 19): Sunway Healthcare Holdings Bhd has filed for Main Market listing to raise funds to help finance an expansion drive that will cost over RM1.6 billion.
A new massive 401-bed hospital in Iskandar Puteri, Johor, alone will cost RM766 million, according to the draft prospectus filed with the Securities Commission Malaysia. Sunway Healthcare is also upgrading existing facilities in a slew of projects estimated to cost nearly RM850 million.
“Our strategy involves continuously increasing our licensed bed count and occupancy rates across our network of hospitals,” Sunway Healthcare said.
The proposed initial public offering (IPO) comes at a time of soaring global markets as investors put behind concerns over trade tensions and on the back of a rising number of new listings on Bursa Malaysia.
Sunway Healthcare, meanwhile, is seeking to cater to the strong demand from a rapidly ageing population in Malaysia as well as tap the rapidly growing medical tourism business.
The aim is to more than double its capacity to over 3,400 beds by 2032, Sunway Healthcare said. The company is also targeting occupancy rates of 70% to 80% at all hospitals nationwide.
The IPO involves an institutional offering of 1.63 billion shares and a retail offering of 345 million shares at a price to be determined later.
Existing shareholders Sunway Bhd (KL:SUNWAY) and Singapore’s sovereign wealth fund GIC will pocket the proceeds from the sale of their existing shares in Sunway Healthcare. GIC owns a 16% stake in Sunway Healthcare, which will be shaved to 7.5% post-IPO.
All in all, the listing offers up to 17% of the company that made a net profit of RM298.85 million on revenue of RM1.85 billion in 2024.
Proceeds from the IPO have also been earmarked for the early settlement of Islamic medium term notes under a RM5 billion sukuk wakalah issued in several tranches and series. To date, Sunway Healthcare has sold RM1.3 billion worth of Islamic bonds under the programme.
The rest will be for defraying listing expenses and Sunway Healthcare has enlisted an army of bankers for the IPO, with Maybank Investment Bank and AmInvestment Bank as joint principal advisers, joint global coordinators, joint bookrunners and joint underwriters.
UBS, HSBC, and Jefferies are joint global coordinators and joint bookrunners, while Affin Hwang Investment Bank, CIMB Investment Bank, and RHB Investment Bank are joint bookrunners and joint underwriters.
CLSA and Mizuho Securities are joint bookrunners.