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