With the Aust government about to float Medibank Private, who's thinking about participating in the stock?
From the proposed size (about $5B market cap) it will be in the ASX200, and anyone holding AU index funds will end up with a little bit of it. But is anyone thinking about it as an individual stock?
I'm debating, with some pros and cons.
+ Generally govt IPOs are priced with some premium for buyers in there (political reasons)
+ Healthcare is an area which is growing, and diversifies away from banks/resources
+ Community based risk sharing makes health insurance in Australia fairly stable
= It seems to be priced on a ~4% fully franked yield, and a PE that seems neither cheap nor expensive to me?
- No discount for retail offer (unless it prices over $2/share)
- If its no longer having 30% of the insurance market in government hands, will govt policy towards the insurance groups get tougher?
I think I'll put in for a small parcel of these shares directly (maybe $10k?). Anyone else thinking about it, or just going to sit back and take a passive index weight? From the back of the envelope, when listed it will be about 0.3% of the ASX200, give or take.