Medibank Private shares capped at $2 in sell-off

AUSTRALIAN retail investors will get Medibank Private shares for $2 each at most, as the Abbott government aims to raise a whopping $5.5 billion from the sale.

Finance Minister Mathias Cormann on Monday released the prospectus for the sell-off, with a price range of between $1.55 and $2 a share.

The prospectus forecast the sale should raise between $4.3 billion and $5.5 billion for the government's coffers.

More than 750,000 investors have put their names down to buy shares already, many of whom were part of the early offer to Medibank Private policyholders.

The sell-off would also bring a new major player to the stock exchange, putting Medibank Private among the ASX 100.

Mr Cormann said that even if the eventual price of the shares when sold went over $2, all Australian residents buying in to the company were guaranteed a cap at $2.

Funds raised from the sale will go towards the Abbott government's "asset recycling" program to help build more major infrastructure projects.

- APN NEWSDESK



Trains, traffic delayed as truck hits bridge

Trains, traffic delayed as truck hits bridge

Ipswich, Springfield train lines suspended

Eight new schools for state’s southeast

premium_icon Eight new schools for state’s southeast

Here's where the new schools will go

Ipswich renovating homes into castles

premium_icon Ipswich renovating homes into castles

Renovations in Queensland are up, and Ipswich is spending big

Local Partners