Medibank Private float offers retail investors an early Christmas gift

Medibank Private float offers retail investors an early Christmas gift

Paul Docherty and Steve Easton discuss the Medibank Private float

The privatisation of Medibank Private will be complete next Tuesday when the company lists on the Australian Securities Exchange. That's exactly one month before Christmas Day and all indications suggest retail investors who applied for shares in the public offer are in for a nice little present.

While the wide indicative price range for retail investors ($1.55 to $2.00) has been criticised, a key guarantee provided in the prospectus is they will not pay more than $2.00 per share. This guarantee exists regardless of the price currently being determined for institutional investors through the so-called book-building process.

Read the full article here.

Learn more about Dr Paul Docherty and Professor Steve Easton at their Researcher Profiles.

Contact: Newcastle Business School

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