Forbes: Sunway Healthcare IPO Planned to Fund $381M Expansion

Sunway Healthcare Holdings, controlled by Malaysian billionaire Jeffrey Cheah, is preparing for an initial public offering (IPO) to fund a 1.6 billion ringgit ($381 million) expansion and debt repayment. The company plans to offer up to 1.9 billion shares, representing a 17% stake, comprising 1.39 billion existing shares and 575 million newly issued shares, according to its preliminary prospectus filed with the Securities Commission Malaysia. The offering's pricing and timeline remain undisclosed. Post-IPO, Sunway City will retain a 69.5% majority stake in Sunway Healthcare, while Singapore's sovereign wealth fund, GIC, will hold 7.5%. Proceeds from the IPO will support Sunway Healthcare's expansion strategy, aligning with Malaysia's ambition to become a leading regional medical tourism destination. The company intends to increase its capacity from 1,520 beds at the end of last year to over 3,400 beds by 2032. The expansion includes a 766 million ringgit investment in a new 401-bed hospital in Iskandar Puteri, Johor, slated for completion by 2032. This region is part of a special economic zone jointly developed by Malaysia and Singapore. Additionally, the Kuala Lumpur-based healthcare group plans an 855 million ringgit investment to more than double its overall hospital bed count. Jeffrey Cheah, whose current net worth is $4.3 billion, is leading the IPO initiative. He is credited with transforming Sunway Group from a tin-mining company over the past five decades. The new Johor hospital will be located near a 500-bed facility being constructed by Singaporean billionaire Peter Lim's Thomson Medical Group.