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(Bloomberg) -- Sunway Bhd. has picked banks including HSBC Holdings Plc and Malayan Banking Bhd. to help arrange an initial public offering of its health-care business, people familiar with the matter said.

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Jefferies Financial Group Inc. and UBS Group AG have also been selected to help coordinate the Sunway Healthcare Group IPO, which could happen as soon as the second half of this year, the people said, asking not to be identified because the process is private. Other banks might be added, they said.

The IPO could be Malaysia’s biggest in a decade.

The company is seeking to raise 3 billion to 4 billion ringgit, based on a valuation of 20 billion ringgit ($4.5 billion), the people said. That’s higher than the 12 billion-14 billion ringgit figure it was said to be eyeing in September, when Bloomberg News reported that Sunway was asking banks for proposals.

The higher valuation expectations reflect an improved earnings outlook for the hospital operator, the people said.

Considerations are ongoing and details such as the size and timing of an offering could change, the people said.

A representative for Sunway declined to comment. Representatives for each of the four banks also declined to comment.

If Sunway Healthcare manages to hit the top of the potential target, in today’s dollar terms it would rival Malakoff Corp.’s $885 million IPO in 2015. Velesto Energy Bhd. raised $902 million in 2013. It would also be a boost for Malaysia’s IPO market, where about $1.6 billion was raised in 2024 followed by more than $50 million so far this year.

Sunway Healthcare established its flagship hospital in 1999 in Sunway City, Kuala Lumpur, and has since opened two more for a combined capacity of about 1,730 beds, its website shows. It also operates ancillary health-care businesses including a fertility center as well as a senior living facility. The company plans to grow its tertiary hospital network in Malaysia to over 3,000 beds by 2030.

Parent Sunway’s interests also include real estate, construction, education, retail, leisure and financial services, among other sectors.

--With assistance from Dave Sebastian.

(Updates with response from Sunway in seventh paragraph.)

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