The government is the UK is privatising its mailing service, 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.

Business Secretary Vince Cable had announced the government's plans to privatise the postal service through a stock issue. The ministers are expecting to announce the details of the plans including a flotation of £2 billion-£3billion flotation on the London Stock Exchange.