Brokers looking to buy a slice of the $4 billion Medibank Private float have poured in $12 billion of bids on behalf of clients, but only have $1.5 billion of shares to sell.

While the Federal Government has already disclosed that the allocation may be further reduced by another 20 per cent, brokers have already eight-times oversubscribed to the controversial float.

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Finance Minister Mathias Cormann says the $12 billion in bids is more than double the shares on offer based on a capped retail price of $2 per share.

“Broker firm allocations have already been significantly scaled back due to the exceptionally strong demand for Medibank Private shares during this phase of the offer,” Senator Cormann said in a statement on Thursday.

He said this is “appropriate and necessary” to ensure equitable access by Medibank Private policy holders and the general public to the share offer.

Demand for Medibank private stock for investors acting through their brokers was worth more than double the value of the company if it sells at the top of its indicative price range of $2 per share.

However, the Government says would-be investors in Medibank can still apply through the general public offer, which remain open until November 14.

Investors will not find out the final price or allocation of shares until November 25, when the institutional offer has closed.

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Some analysts have criticised the sale for leaving investors in the dark as to what price they will pay for their shares, up to a $2 cap for small (under $250,000) shareholders.

However, others argue that the company has good long-term prospects and may represent reasonable value even at the top end of the $1.55-$2 indicative price range stated by the Government.

Senator Cormann said no decisions will be made on the overall split of share allocations between the retail and institutional offers, nor between domestic and international institutions, until the share offer has been completed.

The final price for shares and the number of shares investors will receive based on the allocation criteria is expected to be announced by November 25.