This article first appeared in The Edge Malaysia Weekly on February 9, 2026 - February 15, 2026
SUNWAY Bhd (KL:SUNWAY) is contemplating a valuation of some RM16 billion for its healthcare arm Sunway Healthcare Holdings Bhd (SHH), ahead of its impending listing on Bursa Malaysia, sources say. But whether there is sufficient demand for SHH’s public share sale at such pricey valuations amid a US stock market malaise, stoked by a sell-off in tech stocks over artificial intelligence concerns and its impact on software, remains to be seen.
Ahead of a roadshow for the initial public offering (IPO), sources say the RM16 billion valuation is based on a 55.4 times price-earnings ratio (PER) of SHH’s financial year 2026 estimate (FY2026E) and 39.7 times FY2027E.
Anticipated to take place in March, the listing of SHH will be the largest in recent years, beating those of 99 Speed Mart Retail Holdings Bhd (KL:99SMART) and Khazanah Nasional-backed Farm Fresh Bhd (KL:FFB).
Another source points out that SHH could be priced as much as RM1.45 apiece, which could see the healthcare group raise about RM834 million in proceeds from the issuance of new shares. Meanwhile, Sunway Group could raise up to RM730 million, and Greenwood Capital up to RM129 million from the offer for sale.
A number of market observers deem SHH’s valuations to be lofty, especially as other Bursa-listed healthcare providers are trading at far lower valuations. IHH Healthcare Bhd (KL:IHH) for instance, is trading at 34.75 times forward PER, and KPJ Healthcare Bhd (KL:KPJ) at 32.12 times (see table).
Moreover, the Bursa Malaysia Healthcare Index was the worst-performing index in 2025. Over the last one year, it has fallen by more than 34%.
SHH’s promoters appear to be banking on its size and wide reach.
“Guidance from banks indicate that the promoters of SHH wanted to fetch premium valuations, especially given the group’s status as the largest healthcare provider in the country,” a source says of the healthcare provider, which has more than 1,600 hospital beds.
“SHH has a growth story especially with new hospitals coming on line, which could justify the valuations,” a market observer asserts of SHH, which is 84%-owned by Sunway City Sdn Bhd, a wholly-owned subsidiary of Sunway. The remaining 16% is held by Singapore-based Greenwood Capital Pte Ltd.
Post-IPO, Sunway, via SunCity, would retain a substantial equity interest of 69.5% in SHH, and Greenwood Capital, 7.5%.
Even so, current market sentiment may not be in favour of an expensive valuation and could prove challenging for SHH. A proposed IPO of MMC Corp’s ports arm last year was shelved due to its lofty valuations, among other reasons.
In terms of EV/Ebitda (enterprise value to earnings before interest, taxes, depreciation and amortisation) — the preferred method used by bankers to value companies with substantial assets — sources say that SHH is seeking a valuation of 25.9 times based on FY2026E and 20.7 times FY2027E.
This would be considerably pricier than the 20.1 times EV/Ebitda that Columbia Asia Healthcare Sdn Bhd (now known as Asia OneHealthcare Sdn Bhd) paid for Sime Darby Bhd’s (KL:SIME) Ramsay Sime Darby Health Care Sdn Bhd in 2023.
In its draft prospectus, SHH said the group is the largest private hospital in Malaysia based on the number of beds. It operates five hospitals with a combined 1,662 licensed beds, led by its flagship Sunway Medical Centre in Subang Jaya, Selangor. Its network also includes facilities in Cheras, Penang, Damansara and Ipoh, alongside ancillary businesses such as ambulatory care centres, fertility services, traditional and complementary medicine, home care, and senior living.
SHH plans new hospitals in Seremban, Iskandar Puteri and Putrajaya, as well as a fertility centre in Kota Bharu, which will raise its total bed capacity to more than 3,400 by 2032.
SHH, which is expected to be among the largest IPOs this year, received approval from the Securities Commission Malaysia on Dec 5, 2025 for its proposed listing, which is targeted for the first quarter of 2026.
Its IPO involves up to 1.97 billion shares, comprising an offer for sale of up to 1.39 billion existing shares, representing 12.1% of the enlarged share capital, and a public issue of 575 million new shares, or 5%, to retail and institutional investors.
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, SHH has sold RM1.3 billion worth of Islamic bonds under the programme.
The rest of the proceeds will go towards defraying listing expenses.
SHH 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 also joint bookrunners.
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