Malaysia’s healthcare IPO wave gathers pace as two major players seek mainboard listings

Malaysian pharmacy chain operator Big Caring launched its initial public offering (IPO) on Thursday (29 October), offering up to about 1.9 billion shares at RM1.08 (about S$0.34) each. It expects to list on Bursa Malaysia’s Main Market on 19 November.

Big Caring expects to raise RM637.8 million (about S$200 million) by issuing 590.5 million new shares. The remaining approximately 1.3 billion shares will be sold by existing shareholders.

The IPO has attracted 19 cornerstone investors, which have subscribed for a combined 665.5 million shares. They include J.P. Morgan Asset Management, the International Finance Corporation, global asset manager Abrdn and Principal Asset Management.

Based on the offer price of RM1.08 a share and an enlarged share base of about 7.4 billion shares, the company is expected to have a market capitalisation of RM8 billion upon listing.

Big Caring has more than 600 outlets in Malaysia. The group plans to use most of the more than RM600 million in proceeds to repay bank borrowings, while allocating RM30 million to build a distribution centre and the remaining RM37 million to cover listing expenses.

Management has also set a target of distributing up to 50% of net profit to shareholders as dividends. Actual payouts, however, will depend on factors including cash availability, debt levels and capital expenditure requirements.

Big Caring has expanded aggressively in recent years, with revenue rising from RM1.1 billion in the 2023 financial year to RM4 billion in the 2026 financial year. Net profit more than doubled over the same period, rising from RM41.2 million to RM231.8 million.

Group managing director Lee Ming Chuan said demographic shifts, greater health awareness and demand for convenient healthcare services would continue to drive industry growth.

A day before Big Caring launched its IPO, Asia OneHealthcare Bhd, part of Malaysian billionaire Quek Leng Chan’s business empire, formally submitted a preliminary prospectus on Wednesday (28 October). It plans to offer up to 4.38 billion shares and is also seeking a listing on Bursa Malaysia.

Of the up to 4.38 billion shares Asia OneHealthcare plans to offer, more than 3.8 billion will be sold by existing shareholders, while the remaining 521.1 million will be new shares. The preliminary prospectus did not disclose the offer price, fundraising target or listing date.

The Business Times previously reported that Asia OneHealthcare planned an IPO in the first quarter of 2027, targeting proceeds of about RM7 billion to RM7.5 billion. The company could reportedly be valued at about RM30 billion.

The healthcare company is backed by Hong Leong Group, led by Quek, and US private equity giant TPG. Quek is the healthcare group’s chairman.

The company plans to use the proceeds from the new shares to expand hospitals, maintain equipment, repay part of its bank loans and cover listing expenses.

According to its preliminary prospectus, Asia OneHealthcare currently operates 23 hospitals, of which 22 are in Malaysia and one is in Vietnam.

For the financial year ended in March this year, the group recorded a net profit of RM344.4 million, reversing a net loss of RM85.8 million in the previous financial year. Revenue rose more than 13% year on year to RM3.29 billion.

Malaysia’s healthcare sector is seeing a wave of IPOs. On 18 March this year, Sunway Healthcare made its debut on Bursa Malaysia’s Main Market in the country’s largest listing in nearly nine years, delivering a strong performance on its first trading day.