Sunway Healthcare launches RM2.9b Malaysia IPO

Sunway Healthcare Holdings, Malaysia's healthcare division of conglomerate Sunway, has opened investor subscriptions for an initial public offering targeting RM2.9 billion (€633 million/£531 million) that could rank as the country's largest listing since 2017. The offering comprises 1.97 billion shares priced at RM1.45 (€0.32/£0.27) each, with trading scheduled to commence on 18 March.

The Business Times reported that Sunway Healthcare's RM16.7 billion (€3.6 billion/£3.1 billion) valuation would position it as Malaysia's second-largest listed healthcare provider behind IHH Healthcare. The transaction comes as Kuala Lumpur's IPO market seeks momentum following a 14 per cent decline in proceeds last year.

The company operates five private hospitals plus ambulatory care centres and supportive care facilities throughout Malaysia, with plans to add up to five additional hospitals in coming years. Three facilities are currently under construction as part of the expansion programme.

Capital raised will finance expansion of existing hospitals, construction of new facilities and redemption of Islamic medium-term notes. The share offering includes 575 million new shares and 1.39 billion existing shares allocated to retail and institutional investors.

JPMorgan Asset Management, Eastspring Investments and RBC Global Asset Management have committed as cornerstone investors. Malayan Banking, AmInvestment Bank, UBS Group, HSBC Holdings and Jefferies Financial Group serve as joint global coordinators and underwriters for the transaction.

This marks Sunway's third subsidiary listing on Bursa Malaysia, following earlier flotations of construction arm Sunway Construction Group and Sunway Real Estate Investment Trust.

Explore the offering circular for comprehensive financial data and strategic growth projections.