The federal government hopes to raise up to $5.5 billion from the sale of Medibank Private.

Finance Minister Mathias Cormann said retail investors will be able to buy shares in the private health insurer for between $1.55 and $2 a share.

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Medibank Private is expected to start trading on the Australian share market on December 5.

“The Medibank Private share offer is an exciting opportunity for Australians to participate in the future of Medibank Private,” Mr Cormann said on Monday.

The government intends to sell down its entire holding in Australia’s biggest private health insurer.

It stands to reap between $4.269 billion and $5.508 billion from the sale and stock market listing, depending on the final share price that is set.

Mr Cormann said the price range meant retail investors would not pay more than $2 per share, though the price for institutional investors may be higher.

More than 750,000 Australians have pre-registered to receive the Medibank Private share offer prospectus, which allows them to receive a higher share allocation than those who haven’t registered.

The share offer opens on October 28 and closes on November 14.