Media Release

Medibank Private Share Offer raises $5.679 billion

MC 123/14

Senator the Hon. Mathias Cormann
Minister for Finance

23 November 2014

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

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.

100 per cent of Medibank Private shares have been sold.

The level of demand from investors, both retail and institutional, was very strong.

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 will be published in major newspapers on Tuesday, 25 November 2014.  Applicants will be able 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 will list on the ASX at 12.00pm AEDT on Tuesday, 25 November 2014.  Its ASX code will be 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.

[ENDS]

Media Contact(s): 

Karen Wu – 0428 350 139

Legal Notices
The Medibank Private Share Offer is now closed. The Commonwealth will not accept any further Applications under the Medibank Private Share Offer. This document does not constitute an offer to sell, or a solicitation of an offer to buy securities in the United States. The shares referred to in this document have not been, and will not be, registered under the U.S. Securities Act of 1933 (the “U.S. Securities Act”) or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold in the United States absent registration under the U.S. Securities Act or an exemption from registration requirements.

Medibank Private Share Offer – Retail Offer Allocation Policy

Applicants will be able to get confirmation of their individual allocation from Tuesday, 25 November 2014 by visiting medibankprivateshareoffer.com.au or calling 1800 998 778.

General Public Offer

Applicants who applied under the General Public Offer have received allocations as follows:

General Public Offer Applicants who did not pre-register who applied for

Receive*

$2,000

The full amount you have applied for

$2,001 to $7,000

$2,000 + 75.00% of your Application within this band

$7,001 to $14,000

$5,750 + 20.00% of your Application within this band

Over $14,000

$7,150 + 5.00% of your Application within this band

 

General Public Offer Applicants who pre-registered who applied for

Receive*

$2,000 to $2,300

The full amount you have applied for

$2,301 to $7,000

$2,300 + 86.25% of your Application within this band

$7,001 to $14,000

$6,353.75 + 23.00% of your Application within this band

Over $14,000

$7,963.75 + 5.75% of your Application within this band

Policyholder Offer

Applicants who applied under the Policyholder Offer have received allocations as follows:

Policyholder Offer Applicants who did not pre-register who applied for

Receive*

$2,000 to $2,300

The full amount you have applied for

$2,301 to $7,000

$2,300 + 86.25% of your Application within this band

$7,001 to $14,000

$6,353.75  + 23.00% of your Application within this band

Over $14,000

$7,963.75 + 5.75% of your Application within this band

 

Policyholder Offer Applicants who pre-registered who applied for

Receive*

$2,000 to $2,600

The full amount you have applied for

$2,601 to $7,000

$2,600 + 97.50% of your Application within this band

$7,001 to $14,000

$6,890 + 26.00% of your Application within this band

Over $14,000

$8,710 + 6.50% of your Application within this band

Employee Offer

Applicants who applied under the Employee Offer have received allocations as follows:

Employee Offer Applicants who applied for

Receive*

$2,000 to $2,600

The full amount you have applied for

$2,601 to $7,000

$2,600 + 97.50% of your Application within this band

$7,001 to $14,000

$6,890 + 26.00% of your Application within this band

Over $14,000

$8,710 + 6.50% of your Application within this band

For example, a General Public Offer Applicant who did not pre-register who applied for $10,000 will receive:

Application band

Receive*

$2,000

$2,000 (100% of $2,000)

$2,001 to $7,000

$3,750 (75% of $5,000)

$7,001 to $14,000

$600 (20% of $3,000)

Over $14,000

n/a

Total

$6,350

* The final allocation of Shares will be subject to rounding and application of the Final Price to any allocation above $250,000.

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 investors1  $2.00
   
Proceeds  
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’ allocation2 33.2%
General Public Applicants’ allocation2 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.