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Medibank makes market debut after A$5.6bn Australia IPO | Medibank makes market debut after A$5.6bn Australia IPO |
(about 4 hours later) | |
Australian health insurer Medibank made its stock market debut after raising A$5.679bn (£3.1bn; $4.9bn) in Asia's biggest public offering in two years. | Australian health insurer Medibank made its stock market debut after raising A$5.679bn (£3.1bn; $4.9bn) in Asia's biggest public offering in two years. |
Tuesday's listing on the Australian Securities Exchange was the biggest of a state-owned asset in 18 years. | Tuesday's listing on the Australian Securities Exchange was the biggest of a state-owned asset in 18 years. |
Shares first traded at a premium of A$2.22, compared to A$2.15 that institutional investors had paid and A$2 that retail investors paid. | Shares first traded at a premium of A$2.22, compared to A$2.15 that institutional investors had paid and A$2 that retail investors paid. |
The move was part of the government's plan to sell A$130bn in assets. | The move was part of the government's plan to sell A$130bn in assets. |
Traders had said shares would sell 13% higher than the price that 440,000 retail investors, who own 60% of the firm, paid to subscribe to the listing. | Traders had said shares would sell 13% higher than the price that 440,000 retail investors, who own 60% of the firm, paid to subscribe to the listing. |
Medibank's shares are appealing for investors keen to gain exposure to Australia's booming health industry, which benefits from generous state subsidies and is boosted by a wealthy ageing population. | Medibank's shares are appealing for investors keen to gain exposure to Australia's booming health industry, which benefits from generous state subsidies and is boosted by a wealthy ageing population. |
The debut was the largest share offer of a state firm since the government sold Telstra in 1997. | The debut was the largest share offer of a state firm since the government sold Telstra in 1997. |
The country's largest private health insurer was set up in 1975 by Australia's Health Insurance Commission, now known as Medicare Australia. | The country's largest private health insurer was set up in 1975 by Australia's Health Insurance Commission, now known as Medicare Australia. |
Analysis: Phil Mercer, BBC Sydney Correspondent | Analysis: Phil Mercer, BBC Sydney Correspondent |
It's Australia's most anticipated share offer of the year. | It's Australia's most anticipated share offer of the year. |
Experts predict that shares will soar when trading begins at midday Sydney time (0100 GMT), and there is an expectation their value will climb to A$2.50 by the end of the year. | Experts predict that shares will soar when trading begins at midday Sydney time (0100 GMT), and there is an expectation their value will climb to A$2.50 by the end of the year. |
Another big winner is Australia's federal government. The privatisation of such a valuable and well-known asset has raised A$5.67bn. | |
Finance Minister Mathias Cormann says the cash will be ploughed into infrastructure and would generate a wealth of jobs. | |
Medibank was set up in the mid-1970s to compete in Australia's private insurance market. | Medibank was set up in the mid-1970s to compete in Australia's private insurance market. |
It has been a lucrative enterprise, although net profits slipped from A$232.7m in 2012/13 to A$130.8m in the year to June. | It has been a lucrative enterprise, although net profits slipped from A$232.7m in 2012/13 to A$130.8m in the year to June. |
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