Medibank Private Is On Track To Raise Almost $6 Billion

Photo: Getty/Carsten Koall

The float of Medibank Private could raise up to $5.7 billion or as little as $4.1 billion in its December listing, according to numbers from the banks marketing the privatisation.

The high end of the valuation is $1 billion more than expectations of $4 billion to $4.5 billion.

However, marketing research reports seen by Fairfax Media say that Medibank could trade at a premium to listed rival nib.

The three managers working on the float – Deutsche Bank, Goldman Sachs and Macquarie Capital – sent out reports on Monday in preparation for investor meetings in the next fortnight.

The investor roadshow will go to Asia, New Zealand and the United States as well as Australia.

According to the Sydney Morning Herald, Goldman Sachs said the company could be sold for $4.1 billion to $5.7 billion based on a multiple of Medibank’s net profit in the 2015 year of between 15 to 21-times.

Nib trades on a forward price-to-earnings multiple of 18.5-times and Medibank could trade on a multiple of 18.4 to 21.5-times.

Medibank has about 29% of the $21 billion health insurance market.

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