The Commonwealth Government has announced its intention to sell its ownership in Medibank Private via an Initial Public Offering (IPO) later this year.
Full details of the offer are not available to the market at this time, hence we have not yet formed a view on the attractiveness of the IPO.
The following is a brief list of key takeaways from our research department’s preview of the Medibank IPO:
- Medibank Private is Australia’s largest private health insurer with around 29.5% market share
- The private health insurance industry in Australia is highly concentrated with the five biggest funds holding 83% market share
- Premium pricing is highly regulated by the Commonwealth Government
- Prospectus expected to be released in late October 2014
- Pricing of the IPO is not yet determined
- Medibank is expected to list on the Australian Securities Exchange (ASX) in December 2014
Research source: Morningstar
General Advice Warning
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.
Samuel Adams, GPL (Melbourne) Pty. Ltd. is an Authorised Representative of Godfrey Pembroke Limited ABN 23 002 336 254, an Australian Financial Services Licensee, Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia group of companies.