The price of Medibank Private shares is expected to jump when they start trading at midday (AEDT) today.

It is the most anticipated Australian company float this year, netting the Federal Government around $5.7 billion.

The federal Finance Minister Mathias Cormann and Medibank’s managing director George Savvides will be on hand for the ringing of the bell at the ASX in Sydney.

The listing is the world’s third biggest float this year, and the biggest in Australia since the Howard government sold off Telstra in three stages.

The company will trade under the stock code MPL.

Medibank shares will initially trade on a deferred settlement basis, meaning sellers and buyers can make deals from midday (AEDT) but the transaction will not be completed with full payment until a later date.

Normal settlement trading is expected to start on December 5.

Brokers expect the share price to rise as high as $2.50 today, which would be a 25 per cent gain on the $2 that 440,000 retail investors bought in at and a 16 per cent rise on the $2.15 price that institutions paid.

Around 60 per cent of the shares went to retail investors, while financial institutions got around 40 per cent.

Many analysts believe that institutions will be looking to top up their stake today, and be keen to buy stakes off the small ‘mum and dad’ shareholders.

CMC Markets chief strategist Michael McCarthy said a big jump today is likely, but it might not last.

“It’s very possible we’ll see that sort of price today, however, even at the $2.15 issue price we are looking at a real stretch on valuation and I think it will be difficult to sustain higher levels until we see some of the efficiency dividends that the market is looking for,” he forecast.

Medibank is listing at a high price-to-earnings ratio of 23 times, with investors hoping that Mr Savvides can extract more efficiencies and savings from the organisation now it is in private hands.