Royal Mail shares soar by nearly 48 per cent in first trade
ROYAL MAIL shares rose on the first day of full dealings to close 48 per cent above the privatisation price.
They jumped 14p to 489p, against the offer price of 330p and valuing the business at £4.89billion. The Government’s remaining stake is worth £1.4billion.
Private investors allocated shares worth £750 after applications for more were scaled back are sitting on paper profits of £361.
The rise has stoked controversy over whether the business was sold too cheaply.
A committee of MPs said it had asked Business Secretary Vince Cable and investment bank Lazard, which advised on the float, to give evidence about the pricing of the sale.
Royal Mail chief executive Moya Greene opened trading at the London Stock Exchange alongside Business Minister Michael Fallon and Treasury Chief Secretary Danny Alexander.
She said: “This marks the exciting next phase in our company’s long and proud history. With the support of our new shareholders we are in a strong position to move forward, to compete effectively across our markets and to grow our business.”
The Communication Workers Union will today announce the result of a strike ballot of Royal Mail staff.