You are here: Home - Investing -

Royal Mail stock market flotation to begin ‘within weeks’

Written by:
The Government has announced plans to float Royal Mail on the UK stock market, giving every person in the country a chance to take a stake in the business.

The initial public offering (IPO) is expected to take place in the “coming weeks”.

If the offer goes ahead private investors should be able to purchase Royal Mail shares through a nominee account, ISA or SIPP.

It has not decided exactly how much of the service it will sell, but has said it will be the majority.

While employees will be given 10% of the shares, the rest are being offered to institutional investors and members of the public, with the minimum amount members of the public can apply for set at £750.

The government has said it will decide how much of the Royal Mail to sell depending on market conditions and how much demand there is for the shares.

The Post Office, which was separated from Royal Mail in 2012, is not for sale.there is undoubtedly scepticism towards privatising a quasi-monopoly.

Commenting on the news, Jason Hollands, managing director at Bestinvest, said: “There is undoubtedly scepticism towards privatising a quasi-monopoly. Major courier firms are right to flag certain privileges extended to the Royal Mail that they do not enjoy but that does not mean the Royal Mail is devoid of competitive pressures.

“The spread of email and social media has changed the way we communicate and this has been reflected in declining volumes of letters, once the main stay of the Royal Mail. Yet the surge of online shopping has expanded the parcel market. This is where the opportunities lay for the Royal Mail, as it refocuses to compete with the likes of DHL.”


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week