With over 600,000 Medibank members already directly holding other shares, they present good prospects to purchase shares in the upcoming Medibank float, if the price is right and they get priority treatment.
These are the latest findings from the Roy Morgan Single Source survey of 3,202 interviews with Medibank members in the six months to August 2014.
Medibank members share ownership
Around one quarter (26.3%) of the 2.3 million Medibank members 18 and over (606,000) currently own shares directly. The value of these shares is around $50 billion and represents a strong potential base of support for the impending float of Medibank.
Medibank members: available funds to purchase Medibank shares
Source: Roy Morgan Single Source (Australia), 6 months to August 2014 (n=3,202).
In addition to the $50 billion currently held in shares by Medibank members aged 18 and over, they also have $94 billion in bank accounts. This gives them considerable potential funds available to purchase Medibank shares.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“Medibank members show great potential to purchase their share of the estimated $4 billion to $5.7 billion value of the shares likely to be on offer in the forthcoming float, particularly if they are eligible for a larger preferential allotment. They have currently shown a distinct predisposition towards share ownership and have the funds available if they find the offer attractive.
“There is obviously some time to go before the anticipated listing in December and prior to that date, there will no doubt be considerable discussion and analysis of the float’s prospects.
“Although the outlook is positive at the present time, this could change quickly, particularly if volatility in the ASX increases to create more investor uncertainty or if the government changes any of the conditions relating to the float.”
Roy Morgan Research
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