The Medibank Private Sale Could Create A New ASX 100 Company And Deliver A $5 Billion Windfall For The Government

Finance Minister Mathias Cormann. Photo by Stefan Postles/Getty Images

The sale of Medibank Private will bring in about $5 billion to the federal government by selling shares between $1.55 and $2 per each for the IPO.

The indicative market capitalisation is $4.269 billion to $5.508 billion which would place Medibank Private among the top 100 companies on the ASX.

The price range has been set at $1.55 to $2 per share.

A price cap for retail investors means that Australian residents who choose to apply for shares will not pay any more than $2 even if the final price is set above the indicative range.

The prospectus has been lodged with the Australian Securities and Investments Commission (ASIC) and can be seen here.

Australian retail investors will be able to apply for Medibank Private shares from Tuesday, October 24.

The launch of the offer follows a successful pre-registration process where more than 750,000 Australians asked for the Medibank Private Share Offer prospectus.

Australian residents who pre-registered their interest in receiving a prospectus and apply for shares in the General Public Offer can be allocated an amount of shares up to 15% higher than General Public Offer applicants who did not pre-register.

Finance Minister Mathias Cormann says the sale will remove the current conflict where the Government is both the regulator of the private health insurance market and owner of the largest market participant.

Proceeds from the sale of Medibank Private will be re-invested into productivity enhancing infrastructure through the Government’s Asset Recycling Initiative.

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