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Royal Mail shares jump on first day of full trading | |
(about 7 hours later) | |
Shares in Royal Mail closed at 489p on the company's first day of full trading on the stock exchange, up almost 3%. | |
It is the first day that people who bought shares through the government's website have been able to trade. | |
Royal Mail also confirmed that full time staff will receive 725 shares, worth £3,545, at Tuesday's close. | |
The government priced the shares at 330p each. The sharp rise since then 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. | However, Royal Mail chief executive Moya Greene told the BBC she thought the flotation was valued correctly. |
Royal Mail staff are not allowed to sell their shares for at least three years. | |
After three years they will be allowed to sell 613 shares and the rest in 2017. | |
Right price? | |
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. |
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 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' | 'Wonderful moment' |
Business Secretary Vince Cable has insisted that the taxpayer has not been short-changed by the privatisation, and 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. | "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. | "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, Robert Peston said that if the government sale had been at today's price, taxpayers would have received an additional £900m, at least, and so MPs on the business select committee are to question Vince Cable and his City adviser Lazards on why they sold the shares at the price they did. | |
The privatisation of the 52.2% stake in the Royal Mail has also 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. | 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. |