Medibank Prospectus Details, page-233

Well hopefully Medibank will follow the footsteps of the previous government IPOs. See table below. All made some decent return , especially in the short term. Perfect if your strategy is for a quick stag (Nani??). Love it when the institutions are forced to buy it up to meet indexation.





Not so sure about MBP in the long term though...


"They say that at a float price of $2 a share, the shares would be on a forward price-to-earnings (P/E) ratio of 21 times.
That looks expensive when compared to other listed companies in the insurance sector such as Suncorp, IAG and AMP, which are on forward P/Es of between 13 and 15 times, says Evan Lucas, market strategist with IG. NIB Holdings, the only listed health insurer, is on a forward P/E of 18 times.

To justify the high P/E, Medibank Private would have to be successful in cutting costs, Lucas says. However, he also says the revenue and profit margin growth estimates given in the prospectus do "look conservative".

On a float price of $2, the shares would have an implied cash dividend yield for the 2015 financial year of 4.2 per cent. The shares are expected to be fully franked, giving an implied gross yield after franking credits of 6 per cent, which is good, says Elio D'Amato, chief executive of shares researcher Lincoln Indicators.""