Sunway Healthcare debuts on Main Market, shares jump 17.2 pct

KUALA LUMPUR (March 18): Sunway Healthcare Holdings Bhd (SHH) made a strong debut on the Main Market of Bursa Malaysia, opening at RM1.70 per share, a 17.2 per cent premium over its initial public offering (IPO) price of RM1.45.

The stock saw an opening volume of 36.2 million shares at 9am on Wednesday.

The IPO raised RM3.3 billion, including the over-allotment option, making it Malaysia’s largest listing in nine years and the second-largest healthcare IPO in Asean to date.

SHH raised RM833.8 million through the issuance of 575 million new ordinary shares.

Of the total proceeds, RM554.1 million (66.5 per cent) has been earmarked for hospital expansion to strengthen market position and increase bed capacity.

Another RM249.7 million (29.9 per cent) will be used to partially redeem Tranche 2 and fully redeem Tranche 3 of its Sukuk Wakalah.

Funds from these tranches had been channelled towards the acquisition of Towers A and B of Sunway Medical Centre Sunway City Kuala Lumpur, as well as the development of key hospital projects including Sunway Medical Centre Damansara, Sunway Medical Centre Ipoh, additional towers in Sunway City Kuala Lumpur, and Sunway Medical Centre Penang.

The remaining RM30 million (3.6 per cent) is allocated for listing-related expenses.

Sunway Group founder and chairman Tan Sri Dato Seri Dr Jeffrey Cheah said the strong response reflect confidence from institutional and retail participants.

“Our aspiration is to build a healthcare institution recognised not only for its size, but for its excellence, innovation as well as compassion and care for patients.

“As Sunway Healthcare embarks on this new chapter, we will also continue to be guided by our commitment towards nation-building in our pursuit to establish a Malaysian healthcare group that can rival, or even surpass, the finest medical institutions in the world,” he said in a statement.

SHH president and non-independent executive director Dato Lau Beng Long said the listing supports the company’s long-term growth strategy, built on strengthening clinical capabilities, attracting specialists, and enhancing patient experience.

“Our hospital integration within Sunway townships enhances patients experience by providing convenient access to accommodation, amenities, and supportive services alongside medical care.

“With a clear expansion strategy, we will continue growing our network, expanding capacity and advancing clinical excellence to meet the region’s rising healthcare needs.

“By 2032, SHH is expected to operate more than 3,400 beds across eight hospitals, well-positioned to meet rising domestic demand and Malaysia’s growing prominence as a regional medical tourism hub,” he added.

Maybank Investment Bank Bhd and AmInvestment Bank Bhd acted as joint principal advisers, global coordinators, bookrunners, managing underwriters and underwriters for the IPO.