KUALA LUMPUR (Nov 29): Shares in IHH Healthcare Bhd continued surging this morning, rising as much as 43 sen or 8.19% to RM5.68 after Khazanah Nasional Bhd announced that it was selling a 16% stake to Mitsui & Co Ltd at RM6 per share, or a total of RM8.42 billion.

At 11.28am, the counter saw 9.38 million shares traded and was among the top ten largest gainers on Bursa Malaysia. It had pared gains to trade up 38 sen at RM5.63.

It is worth noting the offer price represents a 37 sen or 6.57% premium to the group's current trading price. Compared to yesterday's closing price of RM5.25, the offer price is a 75 sen or 14.29% premium.

The group is now trading at a trailing 12-months price-earnings valuation of 350.31 times per share.

That being said, IHH shares have fallen from their one-year high of RM6.30 reached on May 22. The counter hit its one year-low of RM4.54 on Nov 13.

On Nov 27, the healthcare group posted a net loss of RM104.07 million for its third quarter ended Sept 30, 2018 compared to a net profit of RM82.09 million a year ago, due to Turkey's lira crisis.

Despite this, most research houses remained positive on the stock. Ten out of 17 analysts who updated their calls over the last two days have a 'buy' recommendation.

PublicInvest Research upgraded its call on IHH to 'outperform' with a 12-month target price of RM6.96.

"We continue to like IHH as a long-term play, underpinned by its aggressive focus on establishing larger network of hospitals in its new home markets, but remain cautious over new hospitals' gestation period," PublicInvest said in a note today.

However, Kenanga Research remained negative, retaining its 'underperform' view of IHH.

The research house lowered its target price for IHH to RM4.60 in a note this morning, "due to the enlarged share base following the additional acquisition of Acibadem and factoring in Fortis".