Investors line up to buy Royal Mail shares
Investors are expressing strong interest in acquiring the shares of the Royal Mail with the deadline till midnight tonight.
The investors are buying the shares to make an instant 25 per cent as the government decided to sell the shares cheaper. The Royal Mail and will continue to accept applications for shares until 4.30pm on Tuesday allowing investors to have time to determine if they wished to invest in the market.
The stake sale in the Royal Mail began in the UK with investors placing orders for much higher number of shares than being offered, indicating that the issue might be priced at the higher side of the pricing range. It is also believed that 10 per cent of the shares will be sold to the postal workers. The government will also encourage retail investors to acquire shares in the company.
According to estimates, at the higher side, the issue would raise about £2 billion for the Treasury and value the firm at £3.3 billion. Experts have said that the government may not chose the highest level for the stock issue as it wants the share value to rise from the flotation in order to convince the market that the flotation was indeed a success.
Experts have said that the true value of the entire company will be known only after a few months of the floatation of the shares.