Malaysian institutional investors, including the Employees Provident Fund (EPF), have invested in the initial public offering (IPO) of Sunway Healthcare, which raised close to MYR3bn (€664m).
Malaysia’s largest float in a decade attracted several domestic pension funds and institutional investors to Sunway Healthcare, an owner and developer of hospitals with a market capitalisation of MYR16.7bn.
The IPO issued nearly 2bn shares, with institutional investors taking up the bulk of the allocation, and was almost six times oversubscribed, with total demand of about MYR11.7bn in value.
Other domestic state institutions that invested in the IPO alongside EPF included Lembaga Tabung Haji, Urusharta Jamaah and AHAM Asset Management.
Foreign investors that became cornerstone investors included JPMorgan Asset Management, Eastspring Investments, RBC Asset Management, International Finance Corporation and AIA.
Sunway Healthcare is part of Sunway Group, a conglomerate controlled by Malaysian billionaire Jeffrey Cheah, and owns five hospitals, the largest of which, Sunway Medical Centre, is located in Kuala Lumpur. It has 800 beds and is the biggest private hospital in Malaysia.
The company said the capital raised at the IPO will be used to increase the number of beds and build new hospitals. It is aiming to grow to eight hospitals by 2030, with more than 3,000 beds.
IFC, which invested MYR60m, said the investment would enable Sunway Healthcare to increase bed capacity, create more jobs and fund investment initiatives and expansion.
Prior to the Iisting, Singapore sovereign wealth fund GIC was one of its largest backers. It had held a 16% stake in the private company.
