IHH Healthcare Bhd, Asia's biggest hospital operator, has received orders for about 60 times the shares available to institutions in a US$2 billion initial public offering, two people familiar with the matter said.

Most investors subscribed for shares at the higher end of the RM2.67 (US$0.84) to RM2.85 range marketed to institutions, the people said, asking not to be named as the information is private. Kuala Lumpur-based IHH, which filed its IPO prospectus on July 3, plans to set a final price for the offering on July 12, according to the sale document.

Malaysian IPOs are defying a global slump in first-time sales, triggered by Europe's debt crisis, which has spurred companies including Formula One to delay or scrap offerings elsewhere. Palm oil producer Felda Global Ventures Holdings Bhd has jumped more than 20 per cent in Kuala Lumpur after raising US$3.3 billion last month.

IHH, which has more than 4,900 beds in 30 hospitals across Asia, stands to benefit from increased medical tourism to the region, and aging populations and rising wealth in Southeast Asia, according to its prospectus. The benchmark FTSE Bursa Malaysia KLCI Index has closed at a record twice this week amid resilient domestic demand and development spending in Southeast Asia's third-biggest economy, including construction of a subway project in Kuala Lumpur.

Ahmad Shahizam Mohd Shariff, IHH's head of business development and investor relations, declined to comment on the IPO subscription levels, according to a company spokeswoman.

Topping Up

If it prices at the high end of the marketed range, the dual listing in Singapore and Kuala Lumpur may raise as much as RM6.4 billion (US$2 billion). IHH, controlled by Malaysia's state investment company Khazanah Nasional Bhd, reserved 62 per cent of the IPO for so-called cornerstone investors who must hold the shares for a minimum 180 days.

Among these are are Government of Singapore Investment Corp, Temasek Holdings Pte's Fullerton Fund Management Co and Malaysian billionaire T. Ananda Krishnan's Usaha Tegas Sdn Bhd, according to the sales document. Some of the cornerstones have asked to add to their allocation by bidding for shares in the open institutional portion, one of the people said. -- Bloomberg