Royal Mail flotation: Shares 'seven times over- subscribed' as 700,000 apply
The number of private individuals applying for shares in the newly privatised Royal Mail has reached 700,000, the Business Secretary Vince Cable has announced.
Mr Cable said the offer had been seven-times oversubscribed, with many investors likely to get significantly fewer shares than they had requested.
Around 30 per cent of shares in the new company have been set aside for individual investors, with the rest going to institutional investors and staff.
Mr Cable faced tough questions from the Business Select Committee over concerns that the company has been undervalued. Committee chairman Adrian Bailey said the Government was overseeing the sale of a profitable, popular, publicly owned company to financial institutions that Mr Cable had criticised in the past.
But Mr Cable said he was “very comfortable” with the sale, stressing that the Government wanted to secure a “long term, responsible” investor base from organisations such as pension funds – along with so-called retail investors.
Conditional trading of shares will start tomorrow and full trading next Tuesday, a day before the result of a strike ballot by the Communication Workers Union.
Any strike would be held on or after 23 October.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Excellent Salary : Austen Lloyd: OXFORD - REGIONAL FIRM - An excellent opportu...
Super Package: Austen Lloyd: BRISTOL - SENIOR CLINICAL NEGLIGENCE - An outstan...
£15000 - £50000 per annum: Recruitment Genius: Fantastic opportunities are ava...
Negotiable: Recruitment Genius: A Compute Engineer is required to join a globa...