The Employees Provident Fund (EPF) is no longer a substantial shareholder of Sunway Healthcare Holdings Bhd after selling one million shares on 16 April, bringing its stake below the 5% threshold.

The shares were sold for about RM1.83 million. After the disposal, the EPF holds around 574.97 million shares in the company, according to a Bursa Malaysia filing dated 21 April.

The fund had only crossed the 5% line about a month earlier. On 18 March, when Sunway Healthcare listed on Bursa Malaysia’s Main Market, the EPF emerged as a substantial shareholder with a 5.13% stake. That position was built through a combination of 499.8 million shares acquired during the initial public offering (IPO), 62.97 million shares received through a dividend-in-specie distribution from Sunway Bhd, and a further 34.6 million shares purchased on the open market. The EPF also disposed of 7.57 million shares around the same period.

Bursa filings show the EPF had been trimming its position in the days before it formally ceased to be a substantial shareholder, disposing of two million shares on 14 April and another two million on 15 April.

One Of 20 Cornerstone Investors In Malaysia’s Largest IPO Since 2017

The EPF was one of 20 cornerstone investors that backed the Sunway Healthcare IPO, which raised RM2.86 billion and was the largest listing on Bursa Malaysia in nine years. Cornerstone investors in the offering are subject to a six-month lock-up period from the listing date.

Sunway Bhd, through its subsidiary Sunway City Sdn Bhd, remains the controlling shareholder with a 69.4% stake. Singapore sovereign wealth fund GIC also holds about 5%.

From RM1.45 To RM2.73, Then Back Down

The stock debuted at an IPO price of RM1.45 and climbed as high as RM2.73 in the weeks after listing, pushing its price-to-earnings ratio above 100 times based on FY2025 net profit of RM252.21 million.

Since then, the shares have pulled back. Sunway Healthcare last traded at RM1.90, giving it a market capitalisation of about RM22 billion. That is still about 31% above the IPO price, but roughly 30% below the post-listing peak.

At current levels, the stock trades at a trailing P/E of around 87 times, well above listed peers IHH Healthcare (around 38 times) and KPJ Healthcare (around 41 times). The premium reflects the market’s expectations for the group’s expansion plans, which include growing from 1,805 licensed beds to over 3,400 by 2032 through new hospitals in Seremban, Iskandar Puteri, and Putrajaya.

Less Visibility On The EPF’s Next Moves

Dropping below 5% does not mean the EPF has dumped the stock. The fund still holds close to 575 million shares, spread across multiple nominee accounts. But once below the threshold, the EPF is no longer obliged to report every transaction in Sunway Healthcare to Bursa Malaysia. Retail investors tracking this counter will have less insight into whether the fund continues to trim, holds steady, or rebuilds its position.

The EPF went through a similar process with Sunway Construction Group last year, disposing of 20 million shares and dropping below 5% in July 2025. That move triggered a sharp sell-off in the stock at the time.

Sunway Healthcare’s valuation remains elevated compared to its listed peers, and how the market reads the EPF’s reduced stake could depend on whether investors see the growth pipeline as enough to justify the premium.Follow us on our official WhatsApp channel for the latest money tips and updates.