Medibank Private Ltd (ASX: MPL) shares have managed to buck the trend today, rising 0.4% compared to the S&P/ASX 200 Index’s (Index: ^AXJO) (ASX: XJO) 0.6% decline. At $2.31, they’re trading at their equal highest price since their market debut late last month.
The stock has thus far been a strong performer for those investors who picked up some shares in the massively-hyped float. The price was capped at $2.00 per share for retail investors, meaning that those who have held on for the month have made a handy 15.5% gain.
Although the shares aren’t cheap at their current price, investors will no doubt continue to pile in hoping that Medibank could someday deliver the same kind of returns as other government privatisations have, including Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) or CSL Limited (ASX: CSL).
Notably, Medibank may need to improve its dividend yield if it hopes to join that lucrative group anytime soon.
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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.
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