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Extract from "Alan Kohler Weekend Briefing 2014-11-01"Medibank PrivateDespite some criticism of the retail conditions of the Medibank Private float -- including in Eureka Report from Scott Francis (see How the Medibank float works against the private investor) and Robert Gottliebsen (see Medibank IPO first impressions: Low yielding and not cheap), the demand from investors has been pretty amazing. Broker bids for stock on behalf of retail clients totalled $12 billion, more than twice the whole company. Only $1.5 billion was allocated on Thursday.In addition to that, 750,000 investors have pre-registered for the direct retail allocations, which close in two weeks. Following that, there will be an institutional book build that will set the price, although it seems likely it will be hard up against the upper cap of $2, for a total of $5.4 billion. In effect retail investors get three bites at the cherry – the broker allocation for rich private clients, direct retail allocations for the le |
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