BREAKING NEWS
What we all suspected / feared is true.. Total bids for broker firm is $12 billion. Only $1.5 billion is allocated to broker firm from the looks of it..
Stockbrokers have bid for $12 billion worth of Medibank shares on behalf of their retail clients, more than double the maximum value of shares on offer of $5.5 billion.
The government said on Thursday that $1.5 billion worth of stock has been allocated to investors who applied through their stockbrokers, after the broker-firm offer closed on Wednesday.
The sale of Medibank Private is set to reap between $4.3 billion and $5.5 billion for the government. This suggests an allocation to brokers of between 27 and 35 per cent. The indicative sale value is based on a price range of between $1.55 and $2 per share.
But the government reiterated that the broker-firm allocation could be scaled back by up to 20 per cent, using what is known as a clawback provision, when the institutional offer is complete.
Retail shareholders who missed out on the amount of shares they were after can still apply through the general retail offer, which closes on November 14.
Read more: http://www.smh.com.au/business/brok...ank-shares-20141030-11e3zc.html#ixzz3HaVOHxJo
