Sunway Healthcare's Initial Public Offering (IPO) is set to raise a substantial RM2.86 billion, according to sources. This significant amount positions Sunway Healthcare Holdings Bhd (SHH) as a potential game-changer in the Bursa Malaysia market. The offering surpasses the previous record set by 99 Speed Mart Retail Holdings Bhd's IPO, making SHH the largest debut in seven years. The bookbuilding exercise, open until March 5, aims to determine the final offer price of approximately RM1.45 per share, with the prospectus set to be launched on February 27. The substantial funds raised will be utilized for strategic initiatives, including hospital expansion and the development of new facilities in Iskandar Puteri, Johor, Putrajaya, and Seremban, which will significantly increase SHH's bed capacity. Post-listing, Sunway will retain control with a 69.5% stake, while Singapore's GIC will reduce its shareholding to 7.5%. SHH's financial performance is impressive, with revenue and net profit increasing in FY2024 compared to FY2023. Healthcare operators are generally considered resilient due to steady demand, price adjustment capabilities, and high entry barriers. SHH's focus on expanding capacity and specialist services positions it for long-term growth in Malaysia's private healthcare segment. The company's valuation, while high, reflects its potential for growth and market leadership.
