Australia to privatize nation's biggest health fund

The Australian government will sell the nation's biggest health fund, Medibank Private, through an Initial Public Offering (IPO) later this year that could raise 4 billion Australian dollars (3.74 billion U.S. dollars), Finance Minister Mathias Cormann announced on Friday.

"It is the government's intention to offer shares to retail investors and domestic and international institutions," Cormann said in a statement.

"All Australians will be given the opportunity to pre-register for a Medibank Private Share Offer prospectus towards the end of September 2014."

The government expects to lodge the Medibank Private Share Offer prospectus with the Australian Securities and Investments Commission in late October and it is expected to list on the Australian Stock Exchange in December.

"Medibank Private is a commercial business operating in a well functioning and competitive private health insurance market with 34 competing funds. As such there is no compelling policy reason for the government to continue to own Medibank Private," he said.