Hopeful stock brokers have made a combined bid to buy almost $12 billion shares in Medibank Private, or more than twice as much as the float of the health insurer will be worth.
The IPO is expected to bring in between $4 billion and $5.5 billion to the Federal Government.
The brokers submitted $11.987 billion in binding bids for Medibank Private shares, but they’ve been allocated only $1.5 billion, about one-eighth less than they wanted.
Broker firm allocations have already been significantly scaled back due to the exceptionally strong level of demand for Medibank Private shares.
More than 750,000 Australians pre-registered for the Medibank Private Share Offer prospectus.
Finance Minister Mathias Cormann says this reduction in broker allocations is necessary to ensure equitable access by Medibank Private policyholders and the general public.
The final price for the Medibank Private shares, somewhere between $1.50 and $2, and the number of shares investors will receive, is expected to be announced by Tuesday, November 25.