Sunway Healthcare, the healthcare arm of Malaysian billionaire Jeffrey Cheah’s Sunway Group, is launching an initial public offering (IPO) set to raise approximately $736 million. This marks potentially the largest first-time share sale in Malaysia in almost ten years, signaling significant investment in the country’s healthcare sector.
IPO Details and Valuation
The company will offer up to 1.97 billion shares at 1.45 ringgit each, with sales to retail investors concluding on March 5th and institutional investors on March 6th. Sunway Healthcare is expected to begin trading on the Bursa Malaysia exchange on March 18th. The IPO values the company at 16.7 billion ringgit, positioning it as the second-largest healthcare provider in Malaysia, trailing only IHH Healthcare.
Expansion Plans and Strategic Growth
A key driver behind the IPO is to fund aggressive expansion plans. Sunway Healthcare currently operates five hospitals across Malaysia and intends to increase capacity by 72%—adding 1,400 beds—by 2032. This growth will be achieved through both expanding existing facilities and constructing three new hospitals.
One notable project is a 401-bed hospital planned for Johor, a southern Malaysian state. This development is strategically aligned with a joint economic zone initiative between Malaysia and Singapore, indicating a focus on cross-border healthcare services. Notably, Peter Lim’s Thomson Medical Group is also constructing a 500-bed hospital in the same region, suggesting increased competition and investment in the Johor healthcare market.
Sunway Group’s Diversification and Cheah’s Influence
Sunway Healthcare is part of the larger Sunway Group, which billionaire Jeffrey Cheah successfully transformed from a tin-mining operation into a diversified conglomerate with holdings in construction, education, infrastructure, real estate, and now, healthcare. Cheah’s net worth is currently estimated at $5.6 billion, solidifying his status as one of Malaysia’s wealthiest individuals. The IPO reflects the broader trend of Malaysian conglomerates expanding their healthcare portfolios to meet growing regional demand.
The Sunway Healthcare IPO demonstrates confidence in the growth potential of Malaysia’s healthcare sector and underscores the increasing role of private investment in regional healthcare infrastructure.
