KUALA LUMPUR, August 29, 2025 – Sunway Bhd has formally announced its intention to list its healthcare arm, Sunway Healthcare Holdings Bhd (SHH), on the Main Market of Bursa Malaysia by the first quarter of 2026, according to a filing made today. The proposed initial public offering (IPO) marks a pivotal step in unlocking value and supporting ambitious expansion plans.
SHH is 84% owned by Sunway City Sdn Bhd (SunCity), a wholly-owned subsidiary of Sunway, with Singapore’s Greenwood Capital holding the remaining 16% stake. The company has proposed a share split at a ratio of one existing SHH share into nine new shares, boosting the total share count to approximately 10.93 billion. After the split, SunCity will execute a dividend-in-specie, distributing SHH shares to qualified Sunway shareholders at a rate of one SHH share for every ten Sunway shares held.
As part of the IPO, SHH plans to issue 1.97 billion shares, equivalent to 17.2% of its enlarged share base. This includes a public issue of 575 million new shares alongside an offer for sale (OFS) of up to 1.4 billion existing shares. The IPO will cater to different investor segments: 230 million shares reserved for the Malaysian public, with half (115 million) specifically allocated to Bumiputera investors, and another 115 million reserved under the pink form scheme for employees, directors, and those who have contributed to the company’s success. The institutional tranche comprises 1.63 billion shares, with about 747.51 million allocated to Bumiputera-approved institutional investors and 881.1 million shares earmarked for selected institutional buyers.
Proceeds from the IPO will be channelled toward repaying existing bank borrowings, bolstering working capital, and covering fees and expenses arising from the listing exercise. Additionally, SHH intends to establish an Employee Share Option Scheme (ESOS), under which a maximum of 5% of issued SHH shares—excluding any treasury shares—may be made available to eligible executives and employees at any point during the scheme’s tenure.
This development aligns with earlier reports indicating Sunway had hired banks—including CIMB, Malayan Banking, and UBS—to manage a potential IPO that could raise over RM3 billion and value SHH at around RM15 billion. If realised, it would become one of Malaysia’s largest listings since Lotte Chemical Titan’s IPO in 2017.
Industry analysts, including those from Hong Leong Investment Bank (HLIB), had previously noted that private healthcare transactions in recent years were trading at enterprise value to EBITDA (EV/EBITDA) multiples of 20–25 times, providing a valuation benchmark for SHH’s IPO. Based on such valuations, Sunway’s 84% interest in SHH could be worth around RM17.2 billion. Their Sum-of-the-Parts (SOP) valuation framework underscores the potential value-unlocking mechanism for Sunway shareholders.
The move comes amid rapid expansion in Sunway’s healthcare footprint. In December 2024, Sunway opened its fourth hospital — Sunway Medical Centre Damansara — which quickly achieved high patient engagement. The fifth facility in Ipoh is set to launch in the second quarter of 2025. The group’s healthcare network, which previously accounted for roughly 10–14% of group pre-tax profit, is poised for further expansion, including a new 325-bed hospital in Putrajaya and potential facilities in Seremban.
