Sunway Healthcare Targets $4.5 Billion Valuation in Malaysia's Largest IPO in a Decade
Sunway Healthcare Group, a subsidiary of Malaysian conglomerate Sunway Bhd., is preparing for a monumental initial public offering (IPO) slated for the second half of 2025.
According to sources familiar with the matter, Sunway has enlisted HSBC Holdings Plc, Malayan Banking Bhd., Jefferies Financial Group Inc., and UBS Group AG to coordinate the IPO. The offering aims to raise 3 billion to 4 billion ringgit (USD 689 million to USD 926 million), valuing Sunway Healthcare at 20 billion ringgit (USD 4.5 billion).
This valuation is a significant increase from the 12 billion-14 billion ringgit target reportedly considered in September 2024. The revised estimates reflect the hospital operator's improved earnings outlook.
Sunway Healthcare intends to expand its tertiary hospital network in Malaysia to over 3,000 beds by 2030. Additionally, the group operates various ancillary healthcare businesses, including a fertility center and a senior living facility.
If successful, Sunway Healthcare's IPO would be the largest in Malaysia since Malakoff Corp.'s USD 885 million offering in 2015 and would boost the country's IPO market, which has seen limited activity in recent years.
Parent company Sunway Bhd. has a diverse portfolio including real estate, construction, education, retail, leisure, and financial services.
Representatives from Sunway and the four banks involved declined to comment on the matter.