KUALA LUMPUR, May 29 — Malaysia’s largest pharmacy chain is preparing to test investor appetite with what could become one of the country’s biggest initial public offerings in a decade.

According to Bloomberg, Big Caring Group Bhd, the operator behind Big Pharmacy and Caring Pharmacy brands, is looking to raise as much as RM3 billion from its Kuala Lumpur listing, according to people familiar with the matter. 

The IPO is targeted for October this year, said the sources, who asked not to be identified as the information remains private.

The group, backed by regional private equity firm Creador Sdn Bhd, plans to offer up to 25.5 per cent of its enlarged share capital. Part of the proceeds will be used to pay down debt, Bloomberg reported.

If realised, the deal would rank among the largest Malaysian listings since at least the past decade. It would follow Sunway Healthcare Holdings Bhd’s RM3.3 billion March IPO, which included an over-allotment option. 

So far this year, about RM5.6 billion has been raised through Malaysian IPOs.

Big Caring operates a network of 626 outlets nationwide, according to its IPO prospectus. The company has signalled ambitions to expand at a steady clip, planning between 40 and 50 new retail locations annually over the next three to five years.

Creador, which first invested in the pharmacy chain in 2015, currently holds about 34 per cent of the company. In the offering, the private equity firm is selling up to 14.8 per cent of its shares. The founders, Lee Meng Chuan and Lim Sin Yin, continue to hold significant stakes.

Deliberations are ongoing, the people cautioned, and the IPO’s size and timing could still change. 

Big Caring did not respond to requests for comment.