Royal Mail privatisation... Would you?

AdrianC

block10 wrote: »

Interesting royal mail shares are currently trading 387p on the grey market (IG Index) suggests a 30p profit per share or a £225 return on the min holding (£750)

<scratches head>
I thought we were looking at 330p/share purchase price?

So that's 57p/share raise, or a bit over £100 return.

lulu650

Assuming £3.30 per share, a £750 investment will receive 227 shares. A 57p rise in value = £129.

Many of use are hoping the price might reach £4 per share, in which case = £159 profit less the associated selling/dealing costs.

Anyone's guess whether the small investors putting in more than £750 will receive more of course....

sebtomato

According to today's newspapers, more than 100,000 small investors have applied for shares (30% of £2 billion of shares available, or £600m)...

Quite a small number of investors given the expected short term gains to be honest.

I guess that's up to £6,000 of shares per investor.

If we assume that quite a few only asked for £750 or £1,000, then it means quite some substantial allocations for the others.

SnowMan

sebtomato wrote: »

According to today's newspapers, more than 100,000 small investors have applied for shares (£1 billion of shares available)...

Quite a small number of investors given the expected short term gains to be honest.

I guess that's up to £10,000 of shares per investor.

If we assume that quite a few only asked for £750 or £1,000, then it means quite some substantial allocations for the others.

I can't believe that as few as 100,000 applied. I think we are talking well over 1 million.

Where did you get your 100,000 figure from?

2010

I think Snowmans nearer the mark with over a million.
Everyone will get £750 worth, after that scaling back.

AdrianC

SnowMan wrote: »

I can't believe that as few as 100,000 applied. I think we are talking well over 1 million.

"More than" 100,000 does include 1m...

Where did you get your 100,000 figure from?

He did say "today's newspapers".

http://www.thisismoney.co.uk/money/markets/article-2450262/Investors-race-Royal-Mail-shares.html
"Close to 100,000"

http://www.londonlovesbusiness.com/business-news/royal-mail/over-100000-small-investors-rush-for-royal-mail-shares/6496.article
"More than 100,000"

Where _they_ got the figure from is another question...

2010

Even I could guess "more than 100,000" applied.
Whoever set the type missed an 0 out.

MoneySaver9999_2

I think it's 100,000 just last night...

http://www.londonlovesbusiness.com/business-news/royal-mail/over-100000-small-investors-rush-for-royal-mail-shares/6496.article

sebtomato

If it's a million, then it would mean £600 of shares per applicant, and the government has confirmed several times that people would get at least £750. Therefore, it cannot be a million. If it's 100,000 in one day, then it could be say 500,000 over the period, or £1,200 of shares per applicant...

2010

Royal Mail shares expected to be 15 times over-subscribed
Royal Mail is expected to deliver the Government’s highest sale price, with the historic share offer set to close 15 times over-subscribed.

Institutional and retail investors have reportedly requested £30bn worth of shares, though the offer is expected to be just £2bn when the first phase of the privatisation is launched on Friday.

http://www.telegraph.co.uk/news/uknews/royal-mail/10365347/Royal-Mail-shares-expected-to-be-15-times-over-subscribed.html