Medibank Private float given the greenlight
The Australian Government has flicked the switch on the sale of Australia’s largest health insurer, Medibank, with the announcement of an initial public offering of shares (IPO) by December.
The Medibank IPO will come after share sales by Australian companies this year reached about $9.7 billion, the highest since 2005, according to data compiled by Bloomberg.
The Commonwealth Finance Minister Mathias Cormann told ABC Radio’s AM program, that the timetable from here is “that by the end of September all Australians will be able to pre-register their interest in Medibank Private shares.”
He added, “By the end of October, people will be able to receive the Medibank Private share offer prospectus. That prospectus will include all of the specific detail about the structure of the sale, including the issues relating to Medibank customers.”
Sam Henderson, CEO of private wealth manager, Henderson Maxwell, said the government will want a good price for Medibank, as it’s one of the best assets it’s got.
“It’s also a perfect time to be selling as Australian shares are at seven year highs, and US markets are at record levels, so they’ve timed this float beautifully,” said Henderson.
The managing director of financial services firm Your Corner, Matt Brown, believes there is strong appetite among retail investors for healthcare stocks, as demonstrated by the positive float of Healthscope in July.
“This augers well for Medibank, as there is an increasing demand for healthcare services on the back of our ageing population and the government’s desire to look at ways to trim the healthcare budget,” Brown said.
“Given that there are not many listed healthcare companies on the ASX, I expect this to be a highly sought after float, while buying shares in the likes of Medibank Private delivers investors some diversification away from the banks and the mining stocks.”
InvestSMART will be issuing an expression of interest for stock, with priority given to members who use our Portfolio Manager for their investments.
Frequently Asked Questions about this Article…
The Medibank Private IPO is the initial public offering of shares for Australia's largest health insurer, Medibank. The Australian Government has announced that the IPO will take place by December, with pre-registration for interest available by the end of September.
You can pre-register your interest in Medibank Private shares by the end of September. This will allow you to receive the share offer prospectus by the end of October, which will include detailed information about the sale structure.
According to Sam Henderson, CEO of Henderson Maxwell, it's a perfect time for the Medibank IPO because Australian shares are at seven-year highs and US markets are at record levels. This timing is expected to help achieve a good price for Medibank.
Medibank Private shares are considered attractive due to the strong appetite among retail investors for healthcare stocks, the increasing demand for healthcare services, and the diversification they offer away from banks and mining stocks.
The Medibank IPO is expected to be highly sought after, similar to the positive float of Healthscope in July. The demand for healthcare stocks is driven by an ageing population and the government's focus on healthcare budget efficiency.
InvestSMART will be issuing an expression of interest for Medibank stock, with priority given to members who use their Portfolio Manager for investments. This provides an opportunity for everyday investors to participate in the IPO.
The Medibank Private share offer prospectus, available by the end of October, will include specific details about the structure of the sale and issues relating to Medibank customers.
There is a strong demand for healthcare stocks like Medibank due to the increasing need for healthcare services driven by an ageing population and the government's efforts to manage healthcare costs effectively.
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