Medibank Private shares hit the ASX
Medibank Private was floated on the ASX yesterday, rallying before experiencing a slight drop in value to close at $2.14.
Share’s in the nation’s largest health fund opened at midday (with an ASX code of MPL) at $2.22, above their issue price of $2.15. After reaching a high of $2.23, they closed 1c below the issue price.
Despite the low closing price, the float actually provided a 7% rise in the value of the shares of the retail investors who purchased the shares at a capped price offer of $2 each. However, it resulted in a 0.5% loss for the institutional investors who paid the standard issue price.
Over 440,000 investors purchased shares in the offer, generating a $5.7 billion profit.
Medibank Private managing director George Saviddes said despite the float, the formerly state-owned health fund’s objectives would not change.
“I’m pleased that it’s now possible for our customers to now own a share in their health fund and a share in our future,” he said.
“I’d like to reassure our many customers, that we remain more committed to them than ever.”
However, this commitment has been called into question after News Corp revealed that the fund had slashed member benefits (including the rebate amounts available for X-Rays and MRIs) without notifying members in writing.
Medibank Private joins NIB as one of the two private health funds listed on the ASX.
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