SUNWAY has picked banks including HSBC Holdings and Malayan Banking to help arrange an initial public offering (IPO) of its healthcare business, sources familiar with the matter said, in what could be Malaysia’s biggest IPO in a decade.
Jefferies Financial Group and UBS Group have also been selected to help coordinate the Sunway Healthcare Group IPO, which could happen as soon as the second half of this year, the sources said, asking not to be identified because the process is private. Other banks might be added, they said.
The company is seeking to raise RM3 billion (S$912 million) to RM4 billion, based on a valuation of RM20 billion, the sources said. That’s higher than the RM12 billion to RM14 billion figure it was said to be eyeing in September, when Bloomberg News reported that Sunway was asking banks for proposals.
The higher valuation expectations reflect an improved earnings outlook for the hospital operator, the sources said.
Considerations are ongoing and details such as the size and timing of an offering could change, the sources said.
A representative for Sunway did not immediately respond to an e-mail requesting comment. Maybank declined to comment, while HSBC did not have an immediate comment. Jefferies and UBS did not immediately respond to requests seeking comment.
If Sunway Healthcare manages to hit the top of the potential target, in today’s US dollar terms it would rival Malakoff’s US$885 million IPO in 2015. Velesto Energy raised US$902 million in 2013. It would also be a boost for Malaysia’s IPO market, where about US$1.6 billion was raised in 2024 followed by more than US$50 million so far this year.
Sunway Healthcare established its flagship hospital in 1999 in Sunway City, Kuala Lumpur, and has since opened two more for a combined capacity of about 1,730 beds, its website shows. It also operates ancillary healthcare businesses including a fertility centre as well as a senior living facility. The company plans to grow its tertiary hospital network in Malaysia to over 3,000 beds by 2030.
Parent Sunway’s interests also include real estate, construction, education, retail, leisure and financial services, among other sectors. BLOOMBERG
