Medibank Private Share Offer raises $5.679 billion

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The Medibank Private Share Offer has been successfully completed, surpassing expectations and returning $5.679 billion in proceeds to be re-invested in job creating infrastructure

The level of demand from investors, both retail and institutional, was very strong. 100 per cent of Medibank Private shares have been sold.

Based on this, the Government has set a final price for Medibank Private shares for institutional investors of $2.15 per share.

Accordingly, the final price for retail investors has been set at the retail price cap of $2.00 per share.(1) This represents a 7 per cent discount for retail investors to the price per share paid by institutional investors.

Retail investors have been allocated 60 per cent of the shares on issue. Eligible Medibank Private and ahm policyholders have been allocated 33.2 per cent of shares allocated under the Retail Offer excluding the Broker Firm Offer.

A progressive scaling policy has been applied to the General Public Offer, Policyholder Offer and Employee Offer to ensure all applicants have been allocated shares, with larger applications being scaled back more than smaller applications.

More than half of General Public Offer, Policyholder Offer and Employee Offer applicants will receive at least 80 per cent of their application.

More than three quarters of these applicants will receive more than half of their application.

No retail investor in the General Public Offer, Policyholder Offer or Employee Offer has been allocated less than the minimum application size of $2,000.

The Retail Offer scaling policy also delivers preferential allocations to eligible Medibank Private and ahm policyholders, applicants who pre-registered and Medibank Private employees, as was outlined in the prospectus.

The Government has also exercised its right to claw back a further 20 per cent of the shares previously allocated to the Broker Firm Offer.

The pricing and allocation details for Australian public applicants were published in major newspapers on Tuesday, 25 November 2014. Applicants are able to to get confirmation of their individual allocation from Tuesday, 25 November 2014 by visiting medibankprivateshareoffer.com.au or calling 1800 998 778. Applicants will need to have their Application Reference Number available.

Transaction confirmation statements will be sent to successful applicants from Thursday, 4 December 2014.

The outcome of the Offer is excellent and the level of interest in Medibank Private, both here in Australia and from global investors, positions the company well for its debut on the Australian Securities Exchange.

Medibank Private listed on the ASX at 12.00pm AEDT on Tuesday, 25 November 2014. Its ASX code is MPL.

The successful completion of the Medibank Private Share Offer is the result of an orderly and methodical sale process, which commenced with a scoping study back in October 2013.

The Government has achieved the sale objectives we outlined to the Australian public.

The proceeds from the sale will now be re-invested into productivity enhancing job creating infrastructure through the Government’s Asset Recycling Initiative.

Medibank Private Share Offer at a glance

Final price per share paid by institutional investors $2.15
Discount per share on final institutional price for retail investors 15 cents or 7 per cent
Final price per share paid by retail investors[1] $2.00
Total proceeds returned to Commonwealth $5.679 billion
Allocation of shares as a percentage of total shares
Retail allocation 60.0%
Total institutional allocation 40.0%
Domestic institutional allocation 22.9%
Offshore institutional allocation 17.1%
Details of Retail Offer
Total number of individual Applications Approximately 440,000
Dollar amount allocated to Retail Offer $3.311 billion
Average shareholding for Retail Offer (Excluding Broker Firm Offer) Approximately $5,850
Policyholder Applicants’ allocation[2] 33.2%
General Public Applicants’ allocation[2] 66.7%

[1] The Retail Price will only apply to the first $250,000 worth of shares (rounded down to the nearest share) allocated to applicants under the Retail Offer. If applicants are allocated shares above $250,000, they will pay the Final Price for those shares.

[2] As a percentage of total Policyholder Offer plus total General Public Offer plus total Employee Offer. Excludes Broker Firm Offer as brokers were responsible for the allocation of shares to their clients under the Broker Firm Offer.

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