KUALA LUMPUR – Big Caring Group Bhd, the operator of BIG Pharmacy and CARiNG Pharmacy, is seeking to raise RM2.03 billion through Malaysia’s second-largest initial public offering (IPO) this year, with existing shareholders set to pocket RM1.4 billion from the sale of their shares.
Priced at RM1.08 per share, the IPO comprises RM637.8 million from newly issued shares for the company and approximately RM1.4 billion from an offer for sale by existing shareholders.
Managing director Lee Meng Chuan and his wife, executive director Lim Sin Yin, are expected to receive a combined RM462 million, directly and through their joint investment vehicle, from the sale of existing shares.
Private equity firm Creador is expected to reap RM933 million from its share disposal.
The company itself will receive RM637.8 million from the public issue, with the bulk of the proceeds earmarked for debt repayment.
“Changing demographics, greater health awareness and demand for accessible healthcare continue to drive growth in our industry,” Lee said at the launch of the listing prospectus on Thursday.
Applications for the Main Market IPO will close on Nov 5, with listing scheduled for Nov 19.
Debt repayment takes centre stage
Big Caring plans to allocate about 90% of its IPO proceeds from the public issue to repay bank borrowings, which stood at RM1.7 billion as of end-August.
The group accumulated much of its debt through acquisitions aimed at expanding its pharmacy and healthcare businesses.
These included RM888.3 million spent on acquiring Caring Pharmacy from 7-Eleven Malaysia Holdings Bhd in 2023, RM249.4 million for pharmaceutical distributor Medispec, and RM32.8 million for a controlling stake in physiotherapy chain Your Physio.
The company is also allocating RM30 million to establish a new distribution centre in Klang to strengthen its nationwide logistics network. The remaining RM37.1 million will be used to cover listing expenses.
The planned debt reduction could help ease the group’s financing burden, while the new distribution centre is intended to support its growing retail network.
However, the extent of any improvement in financial performance will depend on the group’s borrowing costs, operating cash flow and future business growth.
668 outlets and RM4 billion revenue
Big Caring has expanded from a single pharmacy outlet into a nationwide healthcare retail network.
Lee and Lim, both trained pharmacists, opened their first retail outlet in Damansara Uptown in 2006.
As of end-September, the group operated 668 outlets under several brands, including BIG Pharmacy, CARiNG Pharmacy, Georgetown Pharmacy, Wellings, Ting Pharmacy and iCare Pharmacy.
The group had a reported 24.2% market share as of end-September, according to the company’s IPO information.
For the financial year ended June 30, 2026, Big Caring’s net profit rose more than 62% to RM231.8 million, while revenue increased more than 18% to RM4 billion.
At the IPO price of RM1.08 per share, the group is expected to have a market capitalisation of approximately RM8 billion, valuing it at about 42 times its trailing earnings upon listing.
The valuation puts the spotlight on whether the group can sustain earnings growth while managing its debt and expanding its nationwide operations.
Institutional investors back the IPO
Big Caring’s IPO has attracted cornerstone investors, including fund managers Aberdeen Group plc and AHAM Asset Management, as well as the International Finance Corporation, the private-sector arm of the World Bank.
Cornerstone investors are typically institutional investors that commit to subscribing for a portion of an IPO before shares are offered more broadly to retail and institutional investors. Their participation can help support demand, although it does not guarantee the stock’s performance after listing.
Maybank Investment Bank and RHB Investment Bank are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.
AmInvestment Bank serves as a joint principal adviser, joint global coordinator, joint bookrunner and joint underwriter, while UBS serves as a joint global coordinator and joint bookrunner.
With its nationwide pharmacy network and growing earnings, Big Caring is positioning itself as a major healthcare retail listing. Investors will be watching its IPO demand, debt-reduction progress and ability to sustain profit growth as it prepares to enter the Main Market on Nov 19.