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Medibank Private Share Offer

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Medibank Private Share Offer

We have recently received numerous enquiries regarding the pre-registration process for the upcoming Medibank Private Share Offer.  Consequently, we have decided to dedicate this month’s Wealth Pipeline to answering a few frequently asked questions.

General Information

The pre-registration period opened on the 28th of September 2014 and will close on 15th October 2014.  Pre-registration is the first stage of the Medibank Private Share Offer and provides potential investors with an opportunity to reserve a copy of the prospectus. 

By pre-registering, am I then committed to purchasing Medibank Private Shares?

Pre-registering does not commit a potential investor to purchasing Medibank Private shares.   Similarly, a potential investor who does not pre-register is still able to participate in the Medibank Private Share Offer.  However, the effect of pre-registering means that a potential investor can be allocated more shares than if they did not pre-register.   Medibank Private states on their website that pre-registering purely informs the government that an investor is interested in reading the Medibank Private Share Offer prospectus once it becomes available.  Therefore, pre-registering is effectively an expression of interest.

Do Medibank Private policyholders receive allocation preference?

Eligible Medibank Private policyholders who apply for shares can receive a preference in share allocations.  An eligible policyholder is any person covered under private health insurance issued by either Medibank or AHM brands at 11:59pm on 27th September 2014 who are permanent residents of Australia.  Importantly, if an eligible policyholder pre-registers and applies for shares, this preferential allocation can be greater than if the eligible policyholder did not pre-register.  Please note, only one policyholder pre-registration can be made in respect of each policy.

How many times can i pre-register?

Potential investors are only able to pre-register once.  However, if a potential investor is also acting in another capacity such as a trustee of a trust or director of a company, that potential investor can invest in that separate capacity as well.  For example, a trustee of a self-managed super fund is able to register once in their personal capacity and again in their capacity as trustee of their self-managed super fund.   A potential investor who is an eligible policyholder is unable to pre-register both as an eligible policyholder and under the general pre-register option.  Other persons insured under the eligible policy should register under the general pre-registration option.  The following example illustrates these points:

John and Jane Smith have an eligible Medibank Private policy which insures them both.  They also have an SMSF, of which they are both individual trustees.  Jane chooses to pre-register for the Medibank Private Share Offer under the eligible policyholder pre-registration option in her personal capacity as an individual.  Consequently, John is only able to pre-register under the general pre-registration option as Jane is now pre-registered as an eligible policyholder under their shared policy.  With regard to the SMSF, only Jane or John is able to register on behalf of the SMSF in their capacity as trustee (using the general pre-registration option as the SMSF is not an entity insured by the Smith’s Medibank Private policy).    Therefore, Jane and John are able to pre-register up to a maximum of three times: 

  1. Jane Smith as eligible policyholder in her personal capacity via eligible policyholder registration option
  2. John Smith in his personal capacity via general registration option
  3. John Smith (or Jane Smith) as trustee for The J & J Smith Super Fund via general registration option
Are minors able to pre-register?

Minors can pre-register for the Medibank Private Share Offer however they cannot purchase shares, so it is pointless for them to pre-register.   

What happens if i do not pre-register?

If you do not pre-register for the Medibank Private Share Offer, you are still able to participate in the offer however you will be prioritised lower than those who pre-registered.

How do i pre-register?

You are able to pre-register online at http://www.medibankprivateshareoffer.com.au.  If you pre-register using the general option, the only information you need to provide is your first name, last name and email address.  If you pre-register using the eligible policyholder option, you must provide your first name, last name, email address, date of birth and policy number.  It is impossible to pre-register in the name of a non-natural person (e.g. SMSF) but it is possible to pre-register on behalf of a non-natural person.  If you pre-register in more than one capacity (e.g. as an individual and trustee), we suggest you use different email addresses for each.  

Our Comments

We feel that whether the Medibank Private Share Offer is a good investment should not have an impact on whether an individual decides to pre-register.  Pre-registering is merely an expression of interest and not a commitment to participate in the share offer.  Consequently, we feel that everyone should pre-register immediately to better their chances of being allocated Medibank Private shares in the event that they determine it is an appropriate investment for themselves. 

By: September 28, 2014 Medibank, Investment Tags: , ;