Sunway Healthcare seeks RM2.9 billion from Malaysia IPO
The company is looking to add as many as five more hospitals in the coming years, with three under construction
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[KUALA LUMPUR] Malaysia’s Sunway Healthcare Holdings has started taking investor orders for an initial public offering (IPO) that seeks to raise RM2.9 billion (S$942 million), in what may be the country’s biggest listing in nine years.
The health-care arm of conglomerate Sunway on Friday (Feb 27) said that the deal would offer 1.97 billion shares at RM1.45 apiece, according to terms of the deal seen by Bloomberg News. The company is seeking to list its shares on Mar 18.
The deal would provide a boost to Kuala Lumpur’s IPO market, which saw a 14 per cent decline in proceeds last year. The MSCI Malaysia Index has gained 6.8 per cent over the past year, compared with a 38 per cent gain in the MSCI Asia-Pacific Index.
Sunway Healthcare will use the proceeds for capital expenditure related to expansion of existing hospitals, construction of a new hospital and the redemption of Islamic medium-term notes. The valuation of RM16.7 billion would make Sunway Healthcare the second-largest listed health-care provider in Malaysia after IHH Healthcare.
Sunway Healthcare operates five private hospitals, as well as ambulatory care centres and supportive care facilities across Malaysia. It is looking to add as many as five more hospitals in the coming years, with three under construction.
The health-care listing will be Sunway’s third carveout to be listed in the Malaysian stock exchange, after its construction arm Sunway Construction Group Bhd and Sunway Real Estate Investment Trust. Founded by tycoon Jeffrey Cheah, the conglomerate operates in several industries and also owns universities, malls, quarries, and had also ventured into building data centres.
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Cornerstone investors in the IPO include JPMorgan Asset Management, Eastspring Investments and RBC Global Asset Management, according to the deal terms.
Malayan Banking, AmInvestment Bank, UBS Group, HSBC Holdings and Jefferies Financial Group are among the banks arranging Sunway Healthcare’s IPO. BLOOMBERG
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