Five questions about: Royal Mail shares

  • @simonnread

When's the deadline to apply for shares?

Private investors can apply for shares in Royal Mail until next Tuesday 8 October. The minimum application is for £750-worth of shares, or £500 if you're one of the organisation's 150,000 employees.

How much will they be?

Ah, we won't know that until the end of next week. The shares will be priced between 260p and 330p, but whether it's nearer the lower or higher price will depend on market conditions.

So should I buy them?

There are two reasons to consider buying the shares. First is if you think you have a chance of a quick profit. With stockbrokers reporting a lot of interest they may well be over-subscribed, which could mean a high demand when they go on sale.

What's the other reason?

They could be good for income seekers. The company has said it hopes to pay dividends of around 6.5 per cent. That's a lot more than you can get on deposit accounts right now.

How do I apply?

You can apply through your existing stockbroker, a share-dealing service or online directly through the Government site Alternatively you can pick up paper application packs from major Post Office branches.