Monday 7 October Britain is on the verge of the biggest government flotation for two decades as the coalition prepares to offload Royal Mail. Applications to buy Royal Mail shares will close at midnight on Tuesday, before trading on the London Stock Exchange begins on 15 October the price will be confirmed on 11 October.
Here we run through some of the key points surrounding the controversial sell-off:. In stock market terms, every indication is that it will be. The big institutional investors such as pension funds and overseas sovereign wealth funds have placed so many orders for shares that the issue is almost certain to be oversubscribed. Debit cards but not credit cards will be accepted.
People might not receive the share allocation they request if the sell-off is over-subscribed as predicted.
Paper application packs are also available in 1, Post Office branches nationwide, or you could utilise the services of share dealers for small investors, including Hargreaves Lansdown, Halifax, Barclays, Interactive Investor and The Share Centre, who are all on the list of approved intermediaries for the sell-off. Stockbrokers are preparing to open late on Monday and Tuesday to deal with potentially high demand. Possibly no time at all if shares rise immediately.
Royal Mail shares: Should you hold on, sell them, or buy more? | This is Money
Demand from speculators is likely to push share prices to between p and p when stock market trading opens, according to City spread-betting firm IG Group. General investors will be able trade their shares from October But Royal Mail employees who are given shares for free will be unable to sell those shares for three years, although they will receive dividends during that period.
Ten percent of shares will be handed to staff. The Communication Workers Union general secretary, Billy Hayes, said: Surely that is an odd thing to do. Investors will have to balance the risks posed by buying shares at a time when the business has been hit hard by a decline in private letters, but boosted by deliveries of goods bought over the internet.
Labour has argued that the huge demand for Royal Mail shares shows that it is being undervalued and that taxpayers will be ripped off as a result. Chuka Umunna, the shadow business secretary, has called arti drawdown dalam forex the float to be halted on the grounds that the taxpayer could get a better deal.
Umunna davys stockbrokers cork raised concerns that the true value of Royal Mail's property assets, including prime sites in central London, have not been properly reflected in the government's valuation.
The Royal Mail sale prospectus lists three London sites as being surplus: Royal Mail pointed out that sites similar to its London properties have attracted much lower valuations than those suggested by Labour. The Post Office and its branches are not for sale. The government is making The government claims there will be no mch trading system because the companies were split in April last buying royal mail shares at post office.
The two businesses have also signed a year stock brokers in huntsville al to work together, with the Post Office acting as Royal Mail's "front office". However, the National Federation of Sub-Postmasters NFSP has previously called for a halt opening hours anzac day westfield the sale until safeguards are put in place to protect post offices.
George Thomson, the NFSP general secretary, said: We simply have not had the promised new government work that needs to be delivered before the sale of Royal Mail and which would safeguard the future forex broker paypal ecn reviews ratings of an independent Post Office. The proceeds achieved will ultimately depend on how big a stake the government sells.
There is a real risk of strike action by postal workers within days of Royal Mail's privatisation, which may send shares lower. A strike vote closes on 16 October — the day after shares begin trading on the London Stock Exchange — and the earliest a strike could be held is seven days after that.
Please choose your username under which you would like all your comments to show up. You can only set your username once. Government reveals that sell-off is seven times oversubscribed, fuelling criticism that price is too low. Company spokesman indicates further job losses following controversial privatisation of year-old institution.
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The Guardian - Back to home. From buying shares to postal strikes, we run through the main issues surrounding the company's stock market flotation. This article is 3 years old.
Here we run through some of the key points surrounding the controversial sell-off: Will the privatisation be a success? How do I buy shares?
How long will it take to make a profit on shares? Will there be a lock-in period for new shareholders? Isn't the privatisation wrong in principle? Is Royal Mail being undervalued? What is being sold? What will the privatisation mean for the Post Office? Will postal strikes follow the privatisation? Shares IPOs Post Office Stock markets FTSE news. Order by newest oldest recommendations. Show 25 25 50 All.
Threads collapsed expanded unthreaded. Loading comments… Trouble loading? Signed in as Show comment Hide comment. Your comments are currently being pre-moderated why? Please keep comments respectful and abide by the community guidelines. Government is making plans to ensure 'smaller investors get their share', and do not lose out to banks and hedge funds Read Vince Cable's letter to Chuka Umunna. Royal Mail shares hit p in frantic trading in London, meaning instant profits for those who were allocated shares, and fuelling fears that it was sold too cheaply.
Don’t buy Barclays plc or Royal Mail plc until you read this! | The Motley Fool UK
Royal Mail warns of job losses after sell-off. Vince Cable defends Royal Mail sell-off - video. Royal Mail workers protest over privatisation - video. Royal Mail shares demand outstrips supply. The Guardian back to top.