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| Version 3 | Version 4 |
|---|---|
| Royal Mail shares begin full trading on stock market | Royal Mail shares begin full trading on stock market |
| (about 2 hours later) | |
| Shares in Royal Mail have risen to 479.50p on the company's first day of full trading on the stock exchange. | Shares in Royal Mail have risen to 479.50p on the company's first day of full trading on the stock exchange. |
| This is the first day that people who bought shares through the government's website have been able to trade. | This is the first day that people who bought shares through the government's website have been able to trade. |
| The government priced the shares at 330p each. The sharp jump in the share price has led to criticism that they were sold too cheaply. | The government priced the shares at 330p each. The sharp jump in the share price has led to criticism that they were sold too cheaply. |
| However, Royal Mail chief executive Moya Greene told the BBC she thought the flotation was valued correctly. | |
| Paper profit | |
| Conditional trading in Royal Mail began on Friday for people who bought shares through a broker. | |
| Private investors who applied for between £750 and £10,000 worth of shares received 227 shares, initially worth £749.10 at the 330p float price. Those who applied for more than £10,000 worth of shares received none. | Private investors who applied for between £750 and £10,000 worth of shares received 227 shares, initially worth £749.10 at the 330p float price. Those who applied for more than £10,000 worth of shares received none. |
| That means small investors are sitting on a paper profit of more than £300. | That means small investors are sitting on a paper profit of more than £300. |
| However, some investors, who applied online or by post for the shares, have been unable to trade because they do not yet have a reference number needed to sell the stock. | However, some investors, who applied online or by post for the shares, have been unable to trade because they do not yet have a reference number needed to sell the stock. |
| The Department of Business told the BBC it did not have information on what proportion of people have their reference numbers so far. | |
| The prospectus detailing the flotation process for Royal Mail said investors could have to wait until Thursday for their reference number if they applied for shares online, and up to a week if they applied by post. | The prospectus detailing the flotation process for Royal Mail said investors could have to wait until Thursday for their reference number if they applied for shares online, and up to a week if they applied by post. |
| 'Wonderful moment' | |
| Business Secretary Vince Cable has insisted that the taxpayer has not been short-changed by the privatisation. | Business Secretary Vince Cable has insisted that the taxpayer has not been short-changed by the privatisation. |
| In an interview with BBC business editor Robert Peston, Royal Mail chief executive Moya Greene said she thought the flotation was valued correctly. | |
| "I think the secretary for business has called that one properly. With this company, I think we have to look through today to the next six to nine months to see," said Ms Greene. | |
| "We have climbed through a deep hole and we still have a long way to go, but it is a wonderful moment," she added. | |
| However, the privatisation of the 52.2% stake in the Royal Mail has sparked anger from trade unions, who have argued that customers will receive a worse service as a result. | However, the privatisation of the 52.2% stake in the Royal Mail has sparked anger from trade unions, who have argued that customers will receive a worse service as a result. |
| "The share price increase is making profits for wealthy private investors and faceless institutions - it's not bringing any money into Royal Mail," said Dave Ward, deputy general secretary of the Communication Workers Union. | "The share price increase is making profits for wealthy private investors and faceless institutions - it's not bringing any money into Royal Mail," said Dave Ward, deputy general secretary of the Communication Workers Union. |
| On Wednesday, the union, which represents the majority of Royal Mail workers, will reveal the outcome of a strike ballot by postal workers over pay and working conditions. | On Wednesday, the union, which represents the majority of Royal Mail workers, will reveal the outcome of a strike ballot by postal workers over pay and working conditions. |
| BBC industry correspondent John Moylan says that in previous disputes of this nature and seriousness the union has moved quickly to announce at least a 24-hour national strike. |