Sunway Healthcare to raise nearly RM3 bil in Malaysia’s biggest IPO in nine years

Thursday 17 Sep 2026

Make The Edge Malaysia your preferred source on Google

KUALA LUMPUR (Feb 27): Sunway Healthcare Holdings Bhd (SHH), the healthcare arm of Sunway Bhd (KL:SUNWAY), is raising up to RM2.86 billion in the country’s biggest listing in nine years.

The company, which launched its prospectus on Friday morning, has begun taking orders from both retail and institutional investors for the initial public offering (IPO) priced at RM1.45 per share. Applications for the retail tranche will close on March 5 while the institutional offering will end on March 6. The company’s listing is scheduled for March 18.

If successful, the IPO would raise the most funds on Bursa Malaysia since July 2017 when Lotte Chemical Titan Holding Bhd (KL:LCTITAN) grossed RM3.77 billion.

SHH is one of the largest private hospital groups in Malaysia operating a total licensed bed count of 1,805 with bed capacity of 1,982 led by its flagship 848-bed Sunway Medical Centre in Sunway City Kuala Lumpur.

At RM1.45 per share and based on its enlarged issued share capital of 1.97 billion shares, SHH would have a market capitalisation of RM16.7 billion, representing a price-earnings multiple of 64.8 times, and an enterprise value/earnings before interest, taxes, depreciation and amortisation (Ebitda) multiple of 36.1 times based on its net profit of RM257.5 million for the financial year ended Dec 31, 2024.

This confirms The Edge’s reports earlier this month, which cited sources as saying that Sunway is looking for RM16 billion valuation for its healthcare arm IPO with the IPO price set at RM1.45 per share.

By comparison, its peer IHH Healthcare Bhd (KL:IHH) trades at a trailing price-earnings ratio of 30 times with EV/Ebitda of 17.7 times. Meanwhile, KPJ Healthcare Bhd (KL:KPJ) trades at a PER of 37.4 times with EV/Ebitda of 15.4 times.

Cornerstone investors

The IPO is backed by 20 cornerstone investors, including the likes of Employees Provident Fund (EPF), Lembaga Tabung Haji, JPMorgan Asset Management (Singapore) Ltd and Urusharta Jamaah Sdn Bhd.

Cornerstone investors typically agree to buy a large chunk of IPO shares ahead of the IPO, and their presence helps in boosting the company's appeal to other potential investors.

SHH’s IPO involves up to 1.97 billion shares, comprising an offer for sale of up to 1.39 billion existing shares, and a public issue of 575 million new shares to retail and institutional investors.

The institutional tranche comprises 1.62 billion shares while 345 million shares have been allocated to retail investors.

The cornerstone investors have together agreed to take up 854.95 million shares, representing approximately 43.4% of IPO shares or approximately 7.4% of enlarged issued shares.

Save for the EPF, which has agreed to subscribe for, purchase and/or acquire 448.5 million of IPO shares under its individual cornerstone placement agreement, none of the cornerstone investors will individually subscribe for, purchase and/or acquire more than 5% of the group’s IPO shares under their respective individual cornerstone placement agreements.

Cornerstone investors are subject to a six-month lock-up period from the date of listing.

Gross proceeds

At an indicative price of RM1.45 per share, SHH could raise about RM834 million from the issuance of new shares, while Sunway Group and Greenwood Capital could raise up to RM730 million and RM129 million each from the offer for sale.

Post-IPO, Sunway, via SunCity, would retain a substantial equity interest of 69.5% in SHH, and Greenwood Capital 7.5%.

Of the public issue, 66.5% will be allocated for capital expenditure for expansion of existing hospitals, 29.9% for the redemption of sukuk wakalah and 3.6% for defraying fees and related expenses to the listing.

Edited ByPresenna Nambiar & Jason Ng

Text Size