This article first appeared in The Edge Malaysia Weekly on February 23, 2026 – March 1, 2026<\/p>\n
SUNWAY Healthcare Holdings Bhd (SHH) is reportedly set to raise up to RM2.86 billion from its upcoming Main Market listing next month, setting a new benchmark for funds raised in a Bursa Malaysia listing.<\/p>\n
Sources tell The Edge that the bookbuilding exercise of the healthcare arm of Sunway Bhd (KL:SUNWAY<\/a>) remains open until March 5, with the final offer price of about RM1.45 per share to be determined on March 9. The group is slated to launch its prospectus on Feb 27.<\/p>\n At RM2.86 billion, the offering would surpass 99 Speed Mart Retail Holdings Bhd\u2019s (KL:99SMART<\/a>) IPO last year, making SHH the largest debut on Bursa Malaysia in seven years.<\/p>\n According to an investment banker, Main Market listings in recent years have seen very little investor response. He says: \u201cThe Sunway Healthcare listing is gaining some traction because of scarcity of demand and the major shareholder\u2019s persistence in building a healthcare brand from the ground up.\u201d<\/p>\n It was reported that Sunway is seeking a valuation of up to RM16 billion for SHH, implying a price-earnings ratio (PER) of 55.4 times its estimated earnings for FY2026 (ending Dec 31) and 39.7 times its FY2027 forecast.<\/p>\n The investment banker says that in terms of valuation, SHH is being sold at EV\/Ebitda (Enterprise value\/Earnings before interest, taxes, depreciation and amortisation) of close to 27 times its forward earnings.<\/p>\n On paper, SHH appears expensive compared with IHH Healthcare Bhd\u2019s (KL:IHH<\/a>) valuation of 16.8 times EV\/Ebitda.<\/p>\n \u201cMoreover, IHH is a regional brand while SHH is largely a Malaysian name. The group is positioning itself as a healthcare provider with minimal exposure to foreign exchange risks and overseas market developments,\u201d says the investment banker.<\/p>\n SHH has a total capacity of 1,662 beds across five hospitals, including its flagship Sunway Medical Centre in Sunway City Kuala Lumpur. By comparison, IHH \u2014 which has a more diversified regional footprint \u2014 operates more than 3,500 beds in Malaysia and KPJ Healthcare Bhd (KL:KPJ<\/a>) has more than 3,700 beds nationwide.<\/p>\n SHH\u2019s IPO comprises an offer for sale of up to 1.39 billion existing shares and a public issue of 575 million new shares.<\/p>\n Of the total shares offered, about 1.62 billion are allocated to institutional investors, while 345 million shares are reserved for retail investors.<\/p>\n Upon listing, up to 17.1% of the enlarged issued share capital will be in public hands.<\/p>\n Proceeds from the new shares will be used primarily to fund capital expenditure for the expansion of existing hospitals as well as the development of new facilities in Iskandar Puteri, Johor; Putrajaya; and Seremban. These projects are expected to increase SHH\u2019s total licensed bed capacity to more than 3,400 beds by 2032, effectively doubling its scale over the next decade. A portion of the proceeds will also be used to redeem Islamic medium-term notes and defray listing-related expenses.<\/p>\n Post-listing, Sunway \u2014 via its subsidiary Sunway City Sdn Bhd (SunCity) \u2014 will remain the controlling shareholder, with a 69.5% stake, while Singapore\u2019s sovereign wealth fund GIC will pare down its shareholding to 7.5% from 16%.<\/p>\n On the financial front, SHH reported revenue of RM1.85 billion and net profit of RM257.5 million for FY2024, up from RM1.46 billion and RM181.63 million respectively in FY2023, according to its draft prospectus filed with the Securities Commission Malaysia.<\/p>\n Healthcare operators are generally seen as resilient businesses because of steady demand, the ability to adjust prices and high barriers to entry. Private hospital groups are also focusing on higher-margin specialist services, better use of digital systems and more efficient infrastructure to improve profitability.<\/p>\n With expanding capacity and a growing specialist base, SHH is positioning itself to capture long-term growth in Malaysia\u2019s private healthcare segment.\u00a0<\/p>\n Save by subscribing<\/a> to us for P\/S: The Edge is also available on
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