Mum and Dad investors were the winners in the Medibank Private debut on the ASX today.
Their shares, bought for $2, traded at $2.22 on opening and were around $2.19 for the rest of the day. Institutions, which paid $2.15, were also in the money – only if they sold early in the day, because the stock closed at $2.14.
Still, it’s 7% higher than the price paid by retail investors. The ASX was down 0.5% for the day.
Finance Minister Mathias Cormann said he was “looking forward to the judgment of the market” before ringing the ASX bell to signify the start of trade in the stock at midday AEDT.
Stan Shamu, Market Strategist at IG, says Medibank’s debut was predictably the highlight of the day with the stock trading well above the $2 mark. “This sees retail investors doing quite well on the stock but the premium on the stock (PE of around 21 times earnings) is probably the reason it is lower for the day,” he said in a note this afternoon.
The first 30 minutes of trading was a frenzy with about about 246 million shares, worth more than $500 million, traded.
At the close 586 million shares had been traded, worth about $1.289 billion.
The float, raising $5.679 billion for the government to spend on new infrastructure, is the largest since Telstra and one of the largest IPOs in the world this year.