Investing
Royal Mail shares fall as investors take profits after initial surge
Royal Mail shares have fallen in early trading as investors take stock of their positions following the huge surge in the share price of the group over the last few days.
Shares in the group are currently down 2.8% or 13.75p at 475.25p, having soared yesterday to a peak of 491p.
Yesterday’s peak was almost 50% above the privatisation price of 330p, and such is the interest surrounding the float that over a million shares were traded within the first five minutes on Tuesday.
Investors have been attracted not only to the low price of the float, but also the dividend Royal Mail is expected to pay.
There has been criticism that the shares were sold too cheaply, but Royal Mail chief executive Moya Greene said she believed the shares had been priced correctly.
Royal Mail full-time staff, who received 725 shares, are not allowed to sell their shares for three years.
However, the share offer has not stopped 100,000 postal workers planning strike action, with the Communication Workers Union expected to announce a national strike today. This would be the first Royal Mail strike for four years.
