KUALA LUMPUR: Sunway Healthcare Holdings Bhd traded at a 17% premium to its initial public offering (IPO) price as it opened on the Main Market, on the back of a retail offering that was 5.57 times oversubscribed.
The healthcare firm, which has been forecast to have robust growth prospects, has been seen as likely to be included in the FBM KLCI.
"If Sunway Healthcare’s closing market capitalisation on March 18 exceeds that of QL Resources, it is likely to qualify for inclusion in FBM KLCI on a T+2 basis, replacing QL Resources,” said CIMB Securities
The research house noted that QL Resources is currently the smallest constituent on the FBM KLCI with a market capitalisation of about RM13.4bil. Based on its IPO price, Sunway Healthcare's market cap stands at RM16.7bil.
Sunway Healthcare, which raised RM833.8mil in its IPO, has allocated 66.5% of the proceeds for expansion of its existing hospitals, and 29.9% for redemption of its sukuk wakalah, with the remainder for IPO fees and expenses.
The group recently announced its FY25 results with a core net profit of RM252.2mil, in line with its full-year estimate.
In the fourth quarter of FY25, Sunway Healthcare’s revenue grew 21.3% y-o-y, with contributions from hospitals and other businesses up by 21.3% and 20.7%, respectively.
HLIB Research said in its forecast that revenue will grow 19.2% year-on-year in 2026, supported by stronger contributions across all operating hospitals.
The research house has a “buy” call on Sunway Healthcare, with a target price of RM1.63 per share, which is 12% higher than the IPO price of RM1.45.
