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Royal Mail Share Price To Be Revealed

(c) Sky News 2013

Royal Mail shares will be sold for £3.30 each, the government has confirmed.

It said everyone who applied for the minimum £750 investment would receive that amount, but anyone who applied for more than £10,000 of shares would receive none.

In all, 270,000 will get at least half of the shares they applied for.

Interest from private investors was seven times over-subscribed, with Vince Cable, the Business Secretary, saying there had been around 700,000 applications.

Tens of thousands are understood to have applied within the 48 hours prior to Tuesday's deadline, encouraged by speculation that shares could soar in the aftermath of its historic privatisation.

But there were concerns that some people would lose out to professional investors when the shares were allocated.

Some 30% have been set aside for the so-called retail shares, with others going to staff and institutional investors, such as pension funds and sovereign wealth funds.

Kuwait and Singapore are among those which ordered shares worth hundreds of millions of pounds as part of the sell-off, Sky News revealed earlier.

Business Secretary Vince Cable has said he is "very comfortable" with the sale, stressing the Government wanted to secure a "long term, responsible" investor base from organisations such as pension funds.

Around 150,000 Royal Mail staff will each get about £2,200 of free shares.

The nearly-500-year-old institution hopes the money from the privatisation will allow it to secure its long-term future in an increasing competitive delivery market.

Conditional trading of shares will start on Friday and full trading next Tuesday, a day before the result of a strike ballot by postal workers.

Members of the Communication Workers Union are expected to back industrial action over issues linked to privatisation, with any strike set to be held on or after October 23 - the run-up to the busy Christmas period.

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