PETALING JAYA: Sunway Healthcare Holdings Bhd (SHH) is set to raise up to RM2.86 billion in what will be Malaysia's largest listing since 2017, with its debut on the Main Market of Bursa Malaysia scheduled for March 18.
The company has fixed its initial public offering (IPO) price at RM1.45 per share, it said at the launch of its prospectus today.
The IPO comprises 575 million new shares to raise RM833.8 million for SHH and 1.39 billion existing shares offered for sale, bringing the total offering to nearly 1.97 billion shares. Based on the IPO price, the exercise is valued at RM2.86 billion if fully subscribed.
Applications for the retail portion open today and close at 5pm on March 5.
According to the prospectus, about RM554.05 million, or 66 per cent of the IPO proceeds, will be allocated for capital expenditure to expand its existing hospitals over a 36-month period from the listing date.
Meanwhile, RM249.71 million, representing 29.9 per cent, will be used to redeem sukuk wakalah within 24 months, while the remaining RM30 million, or 3.6 per cent, will be set aside for listing-related expenses.
Sunway Group Bhd founder and chairman Datuk Seri Jeffrey Cheah said SHH's listing is expected to lift the group's total market capitalisation to more than RM70 billion.
He noted that the combined market capitalisation of its three listed entities, Sunway Bhd, Sunway Construction Group Bhd and Sunway Real Estate Investment Trust, currently exceeds RM58 billion.
"The growth will depend on prevailing market conditions when SHH is listed, but the strong support from both international and domestic institutional investors, many of whom have come in as cornerstone investors, reflects their confidence in the Sunway brand.
"I am confident SHH will emerge as one of the leading integrated healthcare providers in the region," he said at the prospectus launch.
SHH group president Datuk Lau Beng Long said the group will focus on brownfield expansion between 2026 and 2028 by increasing bed capacity and optimising utilisation across its five existing hospitals.
"SHH has grown steadily into one of Malaysia's leading private healthcare groups, with 1,805 licensed beds and more than 700 consultant specialists across our network.
"While this scale reflects our progress, our true measure of success remains the trust placed in us by the patients and communities we serve," he said.
He added that three new hospitals are also in the pipeline — a tertiary hospital in Seremban, another in Iskandar Puteri, and one in Putrajaya through a joint venture with Putrajaya Holdings Sdn Bhd.
Both the brownfield and greenfield expansion plans are expected to nearly double the group's capacity by 2032, providing a strong and visible growth pipeline over the next five to six years.
Lau said SHH will also continue enhancing clinical excellence by expanding sub-specialties and treatment services, while strengthening its overseas presence through patient referral offices, agent networks and strategic collaborations.