IHH Healthcare’s planned US$2 billion ($2.53 billion) listing in Malaysia and Singapore - the third largest initial public offering of the year globally - has brought interest back into healthcare stocks in Southeast Asia such as Singapore’s Raffles Medical Group, CIMB said in a report.
Shares of Raffles Medical were up 0.9% at $2.36, and have gained 11% so far this year, compared to the Thomson Reuters Asia Pacific and Russia Healthcare Index’s 5.6% rise.
“Recent news flow pertaining to the dual listing of healthcare giant IHH Healthcare in Malaysia and Singapore has certainly brought interest back," said CIMB, adding company-specific news also helped.
Raffles Medical will benefit from hospital bed shortage in Singapore, which has a lower bed ratio lower than other developed countries at 2.22 beds per 1,000 people in 2010, CIMB said. It has an ’outperform’ rating on the stock with a target price of $2.69.
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