15th October 2013
Royal Mail shares are already up by some 3% to 487.91p on their first day of trading on the London Stock Exchange writes Philip Scott.
The stock is now 48% higher than the Government’s initial price of 330p.
Investors who originally bought shares through a broker have been able to trade since Friday but this is the first day those who invested via the Government’s website have been able to.
According to reports, about 16m shares changed hands yesterday and the issue valued the company at almost £4.8bn, a jump of £1.5bn since Friday.
It is expected that thousands of investors will cash in their shares today in a bid to make a quick profit, where most will walk away with a profit of more than £300.
How do I sell?
If you bought shares via the Government, as opposed to a broker, the firm dealing in the shares is called Shareview. You can deal here or call on 0845 268 0282.
Some 700,000 retail investors applied to buy Royal Mail shares.
Retail investors who submitted offers of £10,000 and below received £750 worth of shares with the difference returned. But anyone who applied for more than £10,000 received nothing.
Overall some 270,000 applicants got at least half of the shares they have applied for, while around 5% were left empty-handed.
The privatisation of the Royal Mail is one of the most high-profile and controversial IPOs in decades.
According to The Telegraph, city brokers are considering lodging an official complaint after the Government’s decision to reject the majority of applications for Royal Mail shares cost them millions in lost commissions.
Sky News reports that some members of the Business, Innovation and Skills Select Committee (BIS) want to interview executives from the syndicate of banks responsible for pricing the initial public offering (IPO) at 330p-per-share.