The commonwealth is the sole Shareholder in MPL.

The Medibank Private Sale Act 2006 (Cth) (Sale Act) was enacted in 2—6 and facilitates the sale of MPL. On 26 March 2014, the Australian Government accounted its intention to sell MPL by IPO.

The main purpose of Medibank Private’s IPO is to raise capital for the corporation. The firm will raise a large amount of equity funds when the IPO occurs.
Market Creation
A major reason for Medibank Private to go public is that the management hopes that their shares will rise in value after the IPO, and normally it would be easier to raise debt funds after being listed as well.
Employee Retention
The other aspect is that the management might hope to retain key employees by providing share options as part of their benefits. Due to the value of shares increasing, these may come with restrictions that they may not be sold for between one and three years after the IPO.
Improvement of liquidity
Furthermore, the liquidity would be improved for investor enter and exit after IPO. Especially for short-term investors, such as the liquidity is important to plan out their exit strategy.
Competitive advantages and Financing Opportunities
The IPO enables a company to raise funds in order to increase its asset base. It gives Medibank Private competitive advantages to against other similarly sized companies in this industrial sector, such as (BUPA). Also, it would be easier to raise debt, and the cost is much lower than contracting debt to fund growth.
Improvement of reputation
With the public exposure provided by IPO, the insurance products of Medibank Private can be better known. That provides an opportunity for well public relations exercise. The exposure might improve their reputation, and bring them increasing