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.”