SINGAPORE: GIC Pte Ltd is earning returns of around four times on its early investment in Sunway Healthcare Holdings Bhd, which listed on Bursa Malaysia in March – Malaysia’s biggest initial public offering (IPO) in a decade.
GIC invested S$241.5mil for a 16% stake in Sunway Healthcare in 2021.
Back then, the Singapore government’s fund manager said it was confident in the long-term growth potential of the company, given its award-winning operating track record and focus on providing state-of-the-art medical infrastructure.
In response to queries from The Straits Times on its investment, a GIC spokesperson said: “Healthcare is one of GIC’s clearest long-term investment themes.
“As populations age and expectations for better, more affordable care rise, demand is set to grow for decades.”
The demand has translated into Sunway Healthcare’s IPO being overall oversubscribed by over five-and-a-half times.
The stock opened at RM1.70 a share, compared with an IPO price of RM1.45 a share, rising to a peak of RM2.07 on intraday trading, and eventually closing at RM1.85 on its market debut.
According to the figures from Sunway Healthcare’s public filings, GIC stands to earn around 3.75 times on returns, without taking into account dividends.
The spokesperson said: “GIC invests alongside leading companies to drive innovation, expand access and improve how care is delivered.
“We believe in building scalable solutions that deliver better patient outcomes while creating enduring value for communities.”
In its prospectus documents, Sunway Healthcare said its strengths include having an established market position as the only private hospital group in Malaysia covering the full life cycle of care.
It is also strategically located, with 90% of its beds situated in Kuala Lumpur, Selangor and Penang, which together represent a significant proportion of Malaysia’s population.
The company’s future goals are to attract and retain skilled healthcare professionals, strengthen its presence in the international medical tourism market, and go digital.
Moreover, Sunway Healthcare intends to use proceeds from the IPO to fund the expansion of its existing hospitals and defray fees related to the listing, among other uses.
Notably, GIC recorded a real rate of return of 3.8% a year for the 20 years to March 31, 2025.
The sovereign wealth fund has investments in the healthcare space across both private and public markets.
These investments span pharmaceuticals, healthcare services, technology, and life-sciences infrastructure across both developed and emerging markets.
For example, GIC has invested in Asia Healthcare Holdings, an operating and healthcare investment platform in India.
GIC had invested US$170mil in the company in 2022, and announced a further US$150mil investment in 2024.
Meanwhile, the sovereign wealth fund has investments in Metro Pacific Health in the Philippines as well as Vietnam’s Nhi Dong 315 and Vietnam private health system Vinmec.
Beyond the region, the sovereign wealth fund has invested in Devoted Health, an insurance and tech company based in the United States.
It also has investments in global biopharmaceutical leader Eli Lilly, which has a history of pioneering discoveries for nearly 150 years and whose medicine helps more than 51 million people worldwide. — The Straits Times/ANN
