Hi guys expect a smaller scale back from the JLm's etc as Fundees bids in Broker firm retail around a Billion I was told (from 2 JLM's : Apparently Scale Backs in HSO IPO was due to their bids )would be thrown out. Cheers
Govt cracks down on Medibank bids
PUBLISHED: 0 HOUR 41 MINUTES AGO | UPDATE: 0 HOUR 1 MINUTES AGO
ANTHONY MACDONALD
The government will audit bids into Medibank Private’s retail broker firm offer, to ensure the offer is not being used by institutional investors to buy shares. It is believed the government and its sale team warned retail brokers of the strict rules governing the broker firm offer in the lead up to the float, and are preparing to audit allocations to ensure retail brokers are not selling stock to fund managers. The crackdown comes as domestic fund managers, particularly smaller long-only funds, fret about how many Medibank shares will be made available to them at the initial public offer. The government has heavily publicised the float to Medibank policyholders, sophisticated investors through the retail broker networks and the general public. At the same time, it has incentivised Medibank’s three joint lead managers to sell stock to institutional investors overseas, with double the fees paid for shares sold to global funds. Fund managers are known to have used broker firm offers to secure shares in recent floats, including Healthscope’s $2.2 billion IPO, which was hotly contested by investors. However, the government and its sales team have a mechanism, believed to be an audit of orders over a certain size, to crack down on institutional bids into Medibank’s retail offer. Retail brokers are the first class of investors due to bid for Medibank shares. Broker firm bids are due by October 29, although a lot of retail brokers closed their books last week. Medibank started marketing to retail brokers, from inside and outside its syndicate firms, last Monday and held town hall-style meetings in Sydney, Melbourne and Brisbane early in the week. The government is seeking to raise up to $5.5 billion by floating Medibank next month. The offer is priced at $1.55 to $2 a share, or 16.5-times to 21.3-times forecast 2015 financial year profit. Lazard is advising the government. Deutsche Bank, Goldman Sachs and Macquarie Capital are joint lead managers.
