Sunway Bhd is reportedly seeking a valuation of around RM16 billion for its healthcare arm, Sunway Healthcare Holdings Bhd (SHH), ahead of its planned listing on Bursa Malaysia.
Sources say the valuation is based on about 55 times projected earnings for FY2026 and nearly 40 times FY2027 earnings. The IPO, expected in March, could be the largest in recent years, surpassing listings such as 99 Speed Mart and Farm Fresh.
Sunway Healthcare Holdings operates five hospitals with a combined 1,662 licensed beds, led by its flagship Sunway Medical Centre in Subang Jaya, Selangor.
SHH may be priced at up to RM1.45 per share. The company could raise approximately RM834 million from new shares, while Sunway Group may raise up to RM730 million and Greenwood Capital about RM129 million from the sale of existing shares.
However, some market observers consider the valuation high, especially as other listed healthcare groups are trading at lower multiples. IHH Healthcare is trading at around 35 times forward earnings, while KPJ Healthcare is at about 32 times. The Bursa Malaysia Healthcare Index was also the worst-performing index in 2025, declining more than 34% over the past year.
Despite this, promoters are banking on SHH’s size and expansion plans. SHH operates five hospitals with 1,662 licensed beds, making it the largest private hospital group in Malaysia by bed count. Its flagship is Sunway Medical Centre in Subang Jaya, with other hospitals in Cheras, Penang, Damansara and Ipoh. It also runs related services such as fertility centres, ambulatory care, home care and senior living.
The group plans to open new hospitals in Seremban, Iskandar Puteri and Putrajaya, plus a fertility centre in Kota Bharu. This expansion is expected to increase total bed capacity to over 3,400 by 2032.
After the IPO, Sunway — via Sunway City — will retain about 69.5% stake in SHH, while Greenwood Capital will hold 7.5%.
The IPO will involve up to 1.97 billion shares, representing about 17% of the enlarged share capital. In 2024, SHH recorded a net profit of RM298.85 million on revenue of RM1.85 billion.
Part of the IPO proceeds will be used to repay Islamic bonds issued under a RM5 billion sukuk programme, of which RM1.3 billion has been raised so far. The remainder will go towards listing expenses.
The IPO is being managed by several investment banks, including Maybank Investment Bank and AmInvestment Bank as joint principal advisers, alongside UBS, HSBC, Jefferies and others.
While SHH has a strong growth story, market sentiment and its premium valuation could pose challenges to investor demand.
