Sunway Healthcare Picks Banks for What Could Be Biggest Malaysia IPO in Years

Sunway Bhd has picked banks including HSBC Holdings Plc and Malayan Banking Bhd to help arrange an initial public offering (IPO) of its healthcare business, which could be the biggest in Malaysia in a decade. Jefferies Financial Group Inc. and UBS Group AG have also been selected to help coordinate the Sunway Healthcare Group (SHG) IPO, which could happen as soon as the second half of this year, according to people familiar with the matter.

The IPO could raise as much as RM3.5 billion ($847 million), valuing SHG at up to RM14 billion ($3.3 billion), according to the people, who asked not to be identified because the process is private. At nearly $850 million, the IPO would be the country’s biggest since 2017, according to data compiled by Bloomberg.

Sunway’s healthcare arm has been expanding rapidly, with the opening of its fourth hospital, Sunway Medical Centre Damansara, in December 2024. The hospital has demonstrated strong community acceptance, serving over 2,400 patients, performing 50+ surgeries across various specialties, and registering over 500 health screening sign-ups in under three weeks. Looking ahead, the group plans to launch its fifth hospital, Sunway Medical Centre Ipoh, in the second quarter of 2025, which is expected to replicate the success of SMC Penang by addressing the needs of the underserved community in Ipoh.



Hong Leong Investment Bank (HLIB) Research has valued Sunway’s 84% stake in SHG at RM17.2 billion, based on a sum-of-the-parts (SOP) valuation of 25 times FY26 EV/EBITDA. The research firm believes that the potential listing could unlock value for Sunway shareholders, drawing parallels to the 2015 IPO of Sunway Construction Group Bhd (SunCon), where Sunway shareholders received SunCon shares along with a special dividend funded by IPO proceeds.

CGS-CIMB Research has also reported that the potential sale of Ramsay Sime Darby Health Care (RSDH) at RM7 billion, which implies an EV/Ebitda multiple of 24 times for forecasted financial year 2023 (FY2023F), could lift the valuation of Sunway Health Group (SHG) by 51% to RM10.9 billion, based on a similar multiple.

Sunway’s predominantly domestic-focused business model stands out in its investment appeal, given that it is less exposed to geopolitical uncertainty and potential policy risks. The group’s widening exposure in the Malaysian economy also makes it a good proxy for the domestic economy, which is currently entering a new phase of growth.

In conclusion, Sunway’s selection of banks for the IPO of its healthcare business signals the group’s confidence in the potential valuation and growth prospects of the healthcare segment. With a strong expansion pipeline and a well-received new hospital opening, Sunway Healthcare Group is poised to become one of the largest IPOs in Malaysia in recent years.