[KUALA LUMPUR] Sunway Healthcare Holdings (SHH) has filed for a main market listing in Malaysia, to raise funds for an over-RM1.6 billion (S$487.7 million) expansion drive, which includes the development of a new hospital in Johor’s Iskandar Puteri.
The healthcare arm of Jeffrey Cheah’s Sunway Group said in its draft prospectus filed with the Securities Commission Malaysia on Sep 19 that it plans to more than double its bed capacity by 2032, with new hospitals, extensions and upgrades across its nationwide network.
One of the major projects is a new 401-bed hospital in Iskandar Puteri, Johor, slated for phased completion between 2030 and 2032. The project has an estimated development cost of RM766 million and will anchor the group’s footprint in southern Malaysia.
Beyond Johor, SHH is also building greenfield projects in Seremban and Putrajaya. Sunway Medical Centre Seremban Sentral is expected to add 250 beds by 2029, while the Putrajaya hospital will provide another 325 beds upon completion in 2031.
Meanwhile, nearly RM850 million will be spent on upgrades and extensions at existing facilities, including Sunway Medical Centre Sunway City, Velocity, Penang, Damansara and Ipoh.
These expansions aim to lift overall network capacity from 1,818 beds currently to about 2,462 beds by 2028, with a further expansion to more than 3,400 beds by 2032.
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“Our strategy involves continuously increasing our licensed bed count and occupancy rates across our network of hospitals,” SHH said in the draft prospectus.
Financial performance
The group’s rapid expansion is underpinned by strong earnings momentum. Revenue rose to RM1.85 billion for the 2024 financial year, from RM1.46 billion a year earlier; net profit jumped 42 per cent year on year to RM257.5 million.
Patient volumes have also surged, with inpatient admissions climbing to more than 105,000 in 2024 compared with 87,800 in 2023. Outpatient visits topped 1.3 million last year, underscoring resilient demand for private healthcare services in Malaysia.
After the listing, SHH intends to distribute up to 30 per cent of profit after tax and minority interests as dividends, subject to business requirements.
SHH’s push comes as parent Sunway accelerates growth across its diverse businesses, spanning real estate, construction, education, retail, healthcare and hospitality.
Founded in 1974 by Cheah, the conglomerate has grown into one of Malaysia’s largest groups, with Cheah ranking ninth on Forbes’ list of the country’s richest people with an estimated net worth of US$4.3 billion as at Monday (Sep 22).
IPO structure
The initial public offering (IPO) will comprise an institutional tranche of about 1.63 billion shares and a retail offering of 345 million shares. Pricing will be determined later.
Existing shareholders Sunway Bhd and Singapore’s sovereign wealth fund GIC are set to benefit directly from the sale of shares. GIC, which holds 16 per cent of SHH, will see its stake diluted to 7.5 per cent after the listing. Sunway City, wholly owned by Sunway Bhd, owns the remaining 84 per cent.
Proceeds will also go towards early settlement of Islamic medium-term notes under a RM5 billion sukuk wakalah programme, of which RM1.3 billion has already been issued. A portion will also be used to cover listing expenses.
SHH has assembled a heavyweight line-up of advisers. Maybank Investment Bank and AmInvestment Bank are joint principal advisers, joint global coordinators, joint bookrunners and joint underwriters.
UBS, HSBC and Jefferies are also joint global coordinators and bookrunners, alongside Affin Hwang Investment Bank, CIMB Investment Bank, RHB Investment Bank, CLSA and Mizuho Securities, which serve in various joint bookrunning and underwriting roles.
Market watchers expect SHH’s float to be one of Malaysia’s biggest in nearly a decade. Reuters earlier reported that the IPO could raise more than RM3 billion, rivalling the RM3.8 billion listing of Lotte Chemical Titan in 2017.
Malaysia has seen only a handful of billion-ringgit offerings in recent years. Mr DIY Group’s RM1.5 billion debut in 2020 was the country’s largest in three years; in 2022, dairy producer Farm Fresh pulled in RM1.1 billion amid strong retail participation.
