Medibank - Policyholder allocation, page-2

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artie22

9 Posts.

07/11/14

21:51

Post #: 14255672
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Originally posted by curiouswon ↑

Q: How many shares am I likely to get under the PolicyHolder Offer (having preregistered)??

Preliminary Answer - for comment:
1. I assume that the overall Medibank Offer will be oversubscribed
2. given 1, then rules are "if over-subscribed, and scaling of Retail Applications is required, then Eligible PolicyHolders who pre-registered can be allocated up to 30% higher than"….some others
3. so I may get up to 30% than some others in Retail Offer
4. I think that 750k preregistrations were received by Comm Govt in total (memory, unchecked)
5. expected total Retail Offer applications would be say HALF of 750k (a guess, as I assume some won't follow through because of either don't like the business, or don't expect to get enough allocation to make it worthwhile, or just get lazy, or don't have $) - lets call it 350k applications.
6. Lets assume Govt allocates HALF of issue to "the public" - good politics is reasoning here (maybe more than half?)
7. Assume Issue price $2
8. So of $5.5B issue, $2.75B of shares are issued to 350k applicants - that would be roughly $8k each.
9. So if some applications are for less than $8k, and if PolicyHolders get %more than some others, maybe it is worthwhile applying for $10k as I may get them.
10. Also very likely to get $4-5k if I applied for that (even if I change some numbers in analysis above).
11. Probably unlikely to get >$10k as govt will scale-back these (to get wide distribution to public).

Open invitation to HC members now - shoot this logic down ( the size of my application cheque depends on it!)

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Curiouswon
In agreement with your assessment.
Originally thought of 20K but being realistic MAY go for 10K in hope getting 5k but more likely 3K; which in
scheme of things for me is really not worth it. Still may buy and go for extra after price settles down.

May also sell and make quick $500.

artie22
1 Upvote

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