KUALA LUMPUR, Sunway Bhd has unveiled plans to list its healthcare arm, Sunway Healthcare Holdings Bhd (SHH), by early 2026, with the exercise also involving a share dividend distribution to its shareholders.
Ahead of the proposed IPO of up to 1.97 billion new and existing shares, SHH will undertake a share split, converting each share into nine shares. This will expand its share base from 1.2 billion to 10.9 billion without altering its current valuation of RM2.2 billion.
SHH is 84%-owned by Sunway via Sunway City Sdn Bhd (SunCity), while the remaining 16% is held by Singapore’s Greenwood Capital Pte Ltd. Following the share split, SunCity will distribute its SHH holdings to Sunway as a special dividend, which Sunway intends to pass on to its shareholders at a ratio of one SHH share for every 10 Sunway shares.
The IPO, subject to regulatory approval, will comprise up to 575 million new shares and 1.4 billion existing shares, representing as much as 17.2% of SHH’s equity. Proceeds from Sunway’s portion of the sale will be used to reduce borrowings, support working capital and cover listing expenses. SHH’s portion will be channelled towards hospital expansion, new developments, partial redemption of Islamic medium-term notes, and IPO-related costs.
Post-listing, Sunway is expected to retain a 69.5% stake in SHH through SunCity. The group noted that the exercise would unlock value, provide SHH direct access to capital markets, and strengthen its financial flexibility while reinforcing its position as a leading private healthcare provider in Southeast Asia.
SHH currently operates five hospitals with a combined 1,662 licensed beds, led by its flagship Sunway Medical Centre in Subang Jaya. Its portfolio also includes hospitals in Cheras, Penang, Damansara and Ipoh, alongside services in ambulatory care, fertility, traditional and complementary medicine, home care and senior living.
Expansion plans are underway, including hospitals in Seremban, Iskandar Puteri and Putrajaya, as well as a fertility centre in Kota Bharu. These projects are expected to more than double SHH’s capacity to over 3,400 beds by 2032.
For FY2024, SHH reported a net profit of RM257.5 million on revenue of RM1.85 billion, compared with RM181.6 million and RM1.46 billion respectively in FY2023. Adjusted Ebitda rose to RM458.5 million from RM380.8 million. Maybank Investment Bank and AmInvestment Bank are joint advisers for the IPO.
Sunway’s shares eased two sen or 0.40% to RM4.92 at Friday’s midday break, giving the group a market capitalisation of RM30.85 billion. Year to date, the counter has gained 4.02%.
