By Ying Xian Wong

KUALA LUMPUR, Malaysia--The healthcare arm of Malaysian conglomerate Sunway is eyeing a market capitalization of over $4 billion as its initial public offering gets underway.

Sunway Healthcare is looking to raise about $736.3 million in what would be Malaysia's biggest IPO in nearly a decade.

The company said in a filing Friday that it is pricing 1.97 billion shares at 1.45 ringgit each, implying a market capitalization of about 16.7 billion ringgit, or $4.30 billion.

That would make it one of the biggest listed healthcare providers in Malaysia.

It plans to issue 575 million new shares and will use the proceeds raised to expand its hospitals, redeem bonds and cover listing expenses.

The Wall Street Journal had previously reported on the healthcare company's plan to go public.

Sunway Healthcare's listing comes amid improving sentiment in Asia markets.

Stock exchanges across the region, including in Japan and South Korea, have been on a run of record highs, and emerging markets are increasingly in favor among investors seeking diversification and cheaper valuations.

Malaysia's benchmark Kuala Lumpur Composite Index is trading at levels not seen since 2019, and its IPO market is gathering steam.

That is helping make businesses more confident about dipping their toes into public markets even as geopolitical uncertainty and volatility persist.

Last year, Malaysia hosted 60 listings--the most in two decades. Momentum has continued this year, with companies in various sectors lining up to go public.

Sunway Healthcare's offering looks set to draw healthy demand. It has secured 20 cornerstone investors, including AHAM Asset Management, AIA, Eastspring Investments and JPMorgan Asset Management (Singapore), which have agreed to subscribe to 97.5% of the allocated shares.

For the company, the IPO is a way to fuel its bid to establish a presence in Southeast Asia, executive chairman Jeffrey Cheah said at a press conference on Friday.

Sunway Healthcare has been expanding its footprint across Malaysia and expects to grow its bed capacity to 3,400 by 2032. It currently has 1,805 licensed beds, said the company's president, Lau Beng Long.

Shares of Sunway Healthcare are set to begin trading on Malaysia's main bourse on March 18.

Maybank Investment Bank and AmInvestment Bank are advising on the offering.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

February 27, 2026 01:03 ET (06:03 GMT)

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