Sunway Healthcare Holdings, a subsidiary of the Sunway Group owned by Malaysian billionaire Jeffrey Cheah, is set to raise 2.9 billion ringgit ($736 million) through its initial public offering (IPO). This IPO is expected to be the largest maiden share sale in Malaysia in nearly a decade.
The company is planning to offer up to 1.97 billion shares, including 575 million new shares, priced at 1.45 ringgit each. The IPO commenced today, with the retail investor share sale closing on March 5th and the institutional investor share sale closing on the following day. Trading of Sunway Healthcare shares on Bursa Malaysia is scheduled to begin on March 18th.
The IPO values Sunway Healthcare at 16.7 billion ringgit, positioning it as the second-largest healthcare company in Malaysia after IHH Healthcare, as stated in the prospectus released on Friday. Currently, Sunway Healthcare operates five hospitals across Malaysia.
Proceeds from the IPO will be utilized to support the company’s expansion plans, which include the expansion of existing hospitals and the construction of three new hospitals. Upon completion of these projects, Sunway Healthcare’s capacity is projected to increase by 72% to 3,400 beds by 2032.
One of the notable projects in the pipeline for Sunway Healthcare is a 401-bed hospital in Johor, a state in southern Malaysia. This project, slated for completion by 2032, is part of a special economic zone being jointly developed by Malaysia and Singapore. Additionally, Thomson Medical Group, owned by Singaporean billionaire Peter Lim, is also constructing a 500-bed hospital in Johor as part of an 18-billion-ringgit mixed-use development.
Sunway Healthcare is a key component of the Sunway Group, a conglomerate that Jeffrey Cheah has transformed from a tin-mining company into one of Malaysia’s largest enterprises with interests spanning construction, education, healthcare, infrastructure, and real estate. With a current net worth of $5.6 billion, Cheah ranks among Malaysia’s wealthiest individuals.
The integration of Sunway Healthcare into the Sunway Group’s diverse portfolio signifies a strategic move towards further strengthening the healthcare sector in Malaysia and expanding the group’s presence in the region.
