10th October 2013
The listing price of Royal Mail shares was confirmed at 330p last night, but well off individual investors will miss out on the offer entirely. Those who applied for shares worth £10,000 or more will not receive shares. Those who asked for between £750 and £10,000 worth of shares will receive just £750.
Richard Hunter, Head of Equities, Hargreaves Lansdown says: “This IPO has captured the public’s imagination and will hopefully invigorate the nation’s appetite to invest. Those applying for the minimum amount of £750 will get their full allocation. Those who applied for £10,000 or less will also receive shares worth £750. This is good news for the small investor.
“However, those who applied for over £10,000 will miss out entirely. It is unusual to exclude some applicants altogether; there would normally be a scaling back. This will be a great disappointment to those who have missed out. All eyes will now be on the expected flotations of the bailed-out banks. Hopefully the Government will recognise this opportunity to extend the nation’s savings and investment culture and allocate a significant portion of future privatisations to retail investors.”
Hargreaves Lansdown adds that most private investors who applied through an intermediary should be able to deal during conditional dealing. Hargreaves Lansdown clients will be able to deal in this period but investors should check with their own broker.
Mindful Money editor John Lappin says the Government has given too much to institutions and too little to private investors in the following opinion piece.