Big Caring set for RM8bil valuation, second-largest IPO of 2026

KUALA LUMPUR: Big Caring Group Bhd is poised to become Malaysia's second-largest initial public offering (IPO) of 2026 by market capitalisation, with an implied valuation of about RM8 billion ahead of its Main Market debut on Nov 19.

The pharmacy operator, which launched its IPO prospectus today, is offering up to 1.9 billion shares at a maximum price of RM1.08 apiece.

At the targeted valuation, Big Caring would rank behind Sunway Healthcare Holdings Bhd, which made its market debut in March with an IPO valuation of RM16.68 billion.

It would also be more than three times the size of MTT Shipping and Logistics Bhd, which was valued at RM2.58 billion when it listed in April.

The proposed listing comes as Big Caring expands its nationwide pharmacy network, which has grown to 668 outlets, while its annual revenue has nearly quadrupled over the past three financial years.

The IPO comprises a public issue of 590.5 million new shares and an offer for sale of 1.3 billion existing shares, representing a combined 25.5 per cent of the group's enlarged issued share capital.

The public issue is expected to raise RM637.8 million in gross proceeds for Big Caring, with nearly 90 per cent earmarked for the repayment of bank borrowings.

About RM570.8 million, or 89.5 per cent of the proceeds, will be used to repay borrowings within three months of listing, as the group seeks to strengthen its balance sheet.

Another 4.7 per cent, or about RM30 million, will be allocated to establishing a new distribution centre within 36 months, while the remaining 5.8 per cent will cover listing expenses.

The proposed distribution centre is intended to support the group's growing retail network, with its existing Bukit Raja facility operating at 80.2 per cent utilisation as at Sept 30, 2026.

Group managing director and chief executive officer Lee Meng Chuan said the company has grown from a single pharmacy outlet in 2006 into one of Malaysia's largest pharmacy operators.

He said the listing would support efforts to strengthen distribution capabilities, improve operational efficiency and optimise the group's balance sheet.

Big Caring operates nationwide under six brands: BIG Pharmacy, CARiNG Pharmacy, Georgetown Pharmacy, Wellings Pharmacy, Ting Pharmacy and iCare Pharmacy.

The group added 58 outlets in the financial year ended June 30, 2026 (FY26), followed by another 12 in the three months to Sept 30.

Its expansion has been accompanied by strong earnings growth, with revenue rising from RM1.1 billion in FY23 to RM4 billion in FY26, representing a compound annual growth rate of 53.6 per cent.

Net profit increased more than fivefold over the same period, from RM41.2 million to RM231.8 million.

Based on its FY26 net profit and targeted RM8 billion valuation, Big Caring would list at an indicative price-to-earnings ratio of about 34.5 times, assuming the reported net profit is attributable to shareholders.

The group has also indicated a dividend payout ratio of up to 50 per cent of net profit attributable to owners, subject to its cash position, gearing, capital expenditure requirements and other financial considerations.

Big Caring's listing would mark the return of the CARiNG Pharmacy business to Bursa Malaysia under a larger pharmacy group.

CARiNG Pharmacy Group Bhd was listed in November 2013 before being delisted in May 2020 following a takeover by 7-Eleven Malaysia Holdings Bhd.

BIG Pharmacy subsequently acquired CARiNG in 2023 in a deal valued at RM850 million, bringing the two pharmacy chains under the same group.

Beyond its retail network, Big Caring manufactures, imports, markets, distributes and wholesales healthcare, pharmaceutical and nutraceutical products.

It also provides physiotherapy, teleconsultation and other healthcare-related services.

Of the shares offered under the IPO, about 1.6 billion will be allocated to institutional investors, while 267.6 million will be available under the retail offering.

The retail portion includes 147.6 million shares for the Malaysian public, split equally between Bumiputera and non-Bumiputera applicants.

The remaining 120 million shares will be reserved for eligible directors, employees and individuals who have contributed to the group's success.

Applications for the retail offering open today and close at 5pm on Nov 5.

Maybank Investment Bank Bhd, RHB Investment Bank Bhd and AmInvestment Bank Bhd are among the principal advisers and underwriters for the IPO.

UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are also serving as joint global coordinators and bookrunners.