Medibank will be priced significantly above fellow listed health insurer NIB, which currently sits around 18 times earnings and mainstream insurers like IAG, which is trading around 11 times earnings.
But it will still be considerably cheaper than many healthcare businesses, like Ramsay Healthcare (35 times earnings) and Cochlear (43 times earnings).
OptionsXpress market analyst Ben Le Brun said the final price for the float would be key, but even at the higher end investors may see value in the company.
"The price will be the determining factor but all things being equal the IPO does look attractive at this stage," he said.
"It's not going to be a particularly cheap IPO but it's one I'm personally interested in taking up," he said.
