SINGAPORE – Private healthcare group Foundation Healthcare Holdings (FHH) is already “multiple-times oversubscribed” for its initial public offering (IPO), with strong demand from international and cornerstone investors, according to people with knowledge of the deal.
These include US-based long-only funds – investment portfolios focusing on buying and holding assets for the long term – attracted by FHH’s plans to grow its day surgery business in South-east Asia, they told The Straits Times.
The Temasek-backed healthcare company, which operates four medical centres and a network of 108 specialist doctors in Singapore, is looking to raise $242 million in its IPO. Of this, $118 million will come from 10 cornerstone investors, and the rest from 162.6 million shares on offer to the public and international investors at 76 cents per share.
The group plans to use the net proceeds of around $100 million for investments in and acquisitions of specialist practices and medical centres in Singapore, as well as expanding its business in Malaysia and Hong Kong.
ST understands that nearly 80 per cent of FHH’s shares in the international and cornerstone tranches have been allocated to long-only funds, which include those managed by fund managers that are part of the Monetary Authority of Singapore’s Equity Market Development Programme (EQDP).
The EQDP is a $6.5 billion programme launched in 2025 to invigorate the local stock market by supporting institutional participation in Singapore equities, with a heavy focus on small- and mid-cap stocks. So far, around $4 billion has been allocated to nine asset managers.
The IPO, which opened on July 1, will close at noon on July 6. Trading of the company’s shares is expected to commence on SGX on July 8 at 9am.
Upon listing, FHH’s market capitalisation will stand at $1 billion, making it the largest healthcare IPO since IHH Healthcare’s dual-listing in Singapore and Malaysia in 2012 with an IPO price of $1.11.
IHH operates several major hospitals in Singapore, Malaysia and China, including Mount Elizabeth, Gleneagles and Parkway East.
FHH was set up in 2023 by former senior IHH executives with a $150 million investment from Temasek-owned investment manager SeaTown.
It claims to be the largest multi-specialty healthcare platform in Singapore, with its network of medical specialists across 16 specialties and 74 specialist clinics as at March 31.
Its medical centres in Novena and Orchard provide day surgery, diagnostic imaging, and fertility services and treatment.
Sources close to the deal told ST that they are optimistic about FHH’s business model in the long run due to success in its organic recruitment of specialist doctors, as well as its effectiveness in reducing the administrative burden on specialist doctors, “allowing them to focus on what they do best.”
The group’s competitive strengths “create a flywheel effect that will make the platform a lot more sustainable in the longer term,” they said.
The group posted revenue of $265.9 million for the financial year (FY) ended Dec 31, 2025, up 32 per cent year on year on an adjusted basis.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 33 per cent year on year to $99.1 million for the same financial year.
In FY2025, FHH held a 7.2 per cent share of Singapore’s private specialist market by revenue, and 4.4 per cent of the private medical specialists here.
In its prospectus lodged with MAS on July 1, the group said that its competitive strengths lie in its specialists network; strategic partnerships that help funnel patients directly to its network; the complementary function of its medical centres that lowers costs; and its proprietary technology platform that improves the efficiency of handling patient data.
Mr Liaw Yit Ming, chief executive officer and executive director of FHH, said: “We believe Foundation Healthcare is well-positioned to benefit from long-term healthcare trends, including growing demand for specialist-led care, increasing demand for affordable private healthcare, and the shift towards outpatient healthcare delivery.”
The proposed listing will provide additional resources to pursue strategic acquisitions, expand healthcare infrastructure and technology capabilities, and support their next phase of growth, he added.
According to FHH’s prospectus, the private specialist market is forecast to grow at a compound annual growth rate of 8.8 per cent from 2025 to 2030, with increasing healthcare demand from Singapore’s ageing population as well as an ongoing shift in patient preference towards private care settings for shorter waiting times and greater convenience.
FHH’s IPO, which will be SGX’s sixth in 2026, comes after a dearth of listings from the healthcare sector. The most recent listing was Quantum Healthcare, a dental services and medical equipment company which made its debut on the Catalist board in 2022.
The sector has also seen a number of delistings. Econ Healthcare (Asia), which listed on the Catalist board too in 2021, delisted in July 2025 after the nursing home operator was taken private by investment firm TPG for $88 million.
Another company TalkMed, which specialises in oncology and palliative care, delisted in September 2025 after being acquired by Temasek-backed Tamarind Health.
FHH will also be the second 2026 Mainboard listing that is not a real estate investment trust (REIT), after GIC-backed JustCo made its debut in May, raising $100 million.
The co-working space operator’s performance on the bourse has been lacklustre since its debut despite strong institutional backing, with its share price falling almost 30 per cent to 58.5 cents on July 2.
That has raised some concerns over whether upcoming IPOs can sustain investor interest after listing.
