KUALA LUMPUR (Feb 25): The ex-date for Sunway Bhd’s (KL:SUNWAY) distribution of Sunway Healthcare Holdings Bhd (SHH) shares, as part of the latter's initial public offering (IPO), has been set for March 10.
Shareholders who hold Sunway shares by the entitlement date of March 11 will receive SHH shares via a special dividend-in-specie on the basis of one SHH share for every 10 Sunway shares held.
In a filing on Tuesday, Sunway said the “distribution shares” will be credited into shareholders’ central depository system (CDS) accounts at the same time the IPO shares are allotted to successful applicants under SHH’s IPO, ensuring the distributed shares are immediately tradable upon listing.
The distribution is conditional upon the successful completion of SHH’s IPO and the admission of its shares to the Main Market of Bursa Malaysia. Fractional entitlements will be disregarded.
The shares are scheduled to be credited on March 17, with SHH’s listing targeted for March 18, subject to regulatory timelines.
SHH is set to launch its prospectus on Feb 27 and has signed underwriting agreements with six investment banks — Maybank Investment Bank, AmInvestment Bank, Affin Hwang Investment Bank, CIMB Investment Bank, RHB Investment Bank and Kenanga Investment Bank.
The IPO involves an offer for sale of up to 1.39 billion existing shares and a public issue of 575 million new shares, representing up to 17.1% of the enlarged share capital of the healthcare group.
SHH operates over 1,800 beds nationwide, led by its flagship 848-bed Sunway Medical Centre in Sunway City Kuala Lumpur.
SHH is seeking to raise funds for an expansion programme costing over RM1.6 billion, including a 401-bed hospital in Iskandar Puteri and upgrades at existing facilities. The group aims to more than double its bed capacity to over 3,400 by 2032.
Existing shareholders — Sunway and Singapore sovereign wealth fund GIC — will receive proceeds from the sale of their existing SHH shares. GIC’s current 16% stake will fall to 7.5% post-IPO.
Ahead of the listing, SHH will undertake a pre-IPO share split to increase its share base from 1.2 billion to 10.9 billion. These shares will first be distributed to Sunway via dividend-in-specie, and then distributed to Sunway shareholders in the March 2026 entitlement.
Sunway has said proceeds from its portion of the offer for sale will be used to reduce borrowings, support working capital and cover listing expenses.
As at 4.44pm on Wednesday, Sunway shares were trading up one sen or 0.17% at RM5.83, with a market capitalisation of RM39.68 billion.
Read also:
Sunway Healthcare to launch Main Market IPO by end-March
Sunway’s healthcare unit gets Bursa approval to list with reduced 18% public float
SC gives nod to Sunway Healthcare's Main Market listing
Sunway Healthcare flags DRG system as key regulatory risk ahead of IPO
Sunway Healthcare files for Main Market listing to part-finance expansion worth over RM1.6 bil
Sunway to list healthcare unit in early 2026, wants to give shares to shareholders as dividend