- Title: MEDIBANK-LISTING Australia's Medibank debuts at premium to issue price
- Date: 25th November 2014
- Summary: SYDNEY, AUSTRALIA (NOVEMBER 25, 2014) (REUTERS) **** WARNING CONTAINS FLASH PHOTOGRAPHY **** SYDNEY STOCK EXCHANGE BUILDING ELECTRONIC BOARD WITH STOCKS LISTINGS ELECTRONIC BOARD SHOWING MEDIBANK LOGO AUSTRALIAN FINANCE MINISTER SPEAKING MATIAS CORMANN ON STAGE (SOUNDBITE) (English) AUSTRALIAN FINANCE MINISTER MATIAS CORMANN SAYING: "Right from the word go we've had very strong public interest. Of course, more than 750,000 Australians have pre-registered their interest in a prospectus, a Medibank Private share of a prospectus. We had nearly A$12 billion ($10.29 billion) worth of binding bids from broker firms in Australia and New Zealand. We had more than A$5 billion dollars ($4.29 billion) in interest in bids in applications from other retail applicants. We, of course had very strong overseas domestic and institutional interest and the results are of course all here for you to see today." PEOPLE LISTENING TO SPEECH AUSTRALIAN FINANCE MINISTER MATIAS CORMANN AND MEDIBANK PRIVATE LTD'S MANAGING DIRECTOR GEORGE SAVVIDES RINGING STOCK EXCHANGE BELL/PEOPLE CLAPPING MEDIBANK LOGO ON ELECTRONIC BOARD STOCK PRICE (IN RED) AT TIME OF TRADING
- Embargoed: 10th December 2014 12:00
- Keywords:
- Location: Australia
- Country: Australia
- Topics: General
- Reuters ID: LVA3L7LUGVOQ2WIVMK2ZUXFDZAV0
- Story Text: Shares in Australian health insurer Medibank Private Ltd debuted at a premium to their issue price on Tuesday (November 25) after raising A$5.7 billion ($4.91 billion) in Asia's biggest initial public offering in two years.
The shares first traded at A$2.22 ($1.91) at 0100 GMT, a premium of 3 percent for institutional investors in the initial public offering and 11 percent for retail investors, who received 60 percent of the company. The broader market fell 0.8 percent.
The solid performance by Australia's biggest listing of a state-owned firm in 18 years reflects investor appetite for exposure to the country's health system, which is propped up by an ageing population, two decades of continuous personal wealth accumulation and generous state subsidies.
Adding to Medibank's appeal, institutions running index funds will be obliged to buy the shares, pushing them even higher, because the company will join the benchmark S&P 200 index in January while they own relatively little of it.
"Right from the word go we've had very strong public interest. Of course, more than 750,000 Australians have pre-registered their interest in a prospectus, a Medibank Private share of a prospectus. We had nearly A$12 billion ($10.29 billion) worth of binding bids from broker firms in Australia and New Zealand. We had more than A$5 billion dollars ($4.29 billion) in interest in bids in applications from other retail applicants. We, of course had very strong overseas domestic and institutional interest and the results are of course all here for you to see today," said Finance Minister Mathias Cormann.
Medibank's positive listing performance could also prove politically beneficial to a government struggling to win support for policies like its plan to pay for capital works and pay down debt by selling A$130 billion ($111.69 billion) of public assets.
The company was trading at a multiple of 23.5 times 2015 forecast profit, while the only other listed Australian health insurer, NiB Holdings Ltd, was trading at 17.7 times.
Of the general insurers, Insurance Australia Group Ltd was trading at 12.8 times 2015 profit and Suncorp Group Ltd traded at 13.3 times.
Healthcare companies are expected to account for about three quarters of the total capital raised in what is set to be Australia's biggest year of IPOs by dollar value. - Copyright Holder: REUTERS
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