Royal Mail Shares - Buying is fine, but how to sell?

sabretoothtigger

Government unveils Royal Mail IPO price range
By Julie Fisher | Fri, 27th September 2013 - 10:46
Government unveils Royal Mail IPO price range
Royal Mail's stockmarket launch could give it a value of up to £3.3 billion, based on the expected price range announced by the government on Friday.

Shares are expected to be offered at a price of between 260p and 330p, giving the postal service a market capitalisation of £2.6-3.3 billion.

Initially, between 401 million and 522 million shares will be offered to institutional and retail investors, with the retail investors able to purchase shares through intermediaries including Interactive Investor.

This base offering will make up between 40.1% and 52.2% of the company, with the potential for an over-allotment option of up to 15% of the base offer and the government retaining up to 49.9%. A 10% tranche of shares will also be made available for free to 150,000 eligible Royal Mail employees.

Full trading of the shares on the London Stock Exchange is expected to begin on 15 October.

The offer is only directed to persons within the UK and any application to apply for shares should be made only in the basis of information contained within the Prospectus.

http://www.iii.co.uk/articles/118192/government-unveils-royal-mail-ipo-price-range

Doshwaster

The full prospectus is out today. All 450 pages if you are interested:

http://www.royalmailgroup.com/sites/default/files/161763%20Project%20PNF%20Full%20Prospectus.pdf

or the shorter 28 page version: http://www.royalmailgroup.com/sites/default/files/161763%20Project%20PNF%20Summary%20Prospectus.pdf

I was still considering what to do but it looks like the offer is oversubscribed already: http://uk.reuters.com/article/2013/09/27/uk-royalmail-ipo-idUKBRE98Q07520130927

DocProc

I was still considering what to do but it looks like the offer is oversubscribed already: http://uk.reuters.com/article/2013/0...98Q07520130927

This means the offer has been successful and the shares will most likely open at a premium to the pitched price.

It also indicates the applications might be scaled back.

It also indicates the price will be pitched towards the higher end of the range.

billchecker1

I have only placed a £1000 application in. Am hoping that price will go up and look to sell£800 and keep the rest for the Div.

If it doesn't go up then am happy to keep.

Mickygg

2010 wrote: »

The most important thing seems to have been overlooked here.
You do not know the price of each share or how many you will get until AFTER they have grabbed your money.

Would you go into a shop and give them £1k for goods and they tell you afterwards how much the goods are and how many you`ll get

---

NO.

Yet you go and buy some anyway??

richto

Buzby wrote: »

Indeed - I wouldn't touch them with the proverbial pole. RM staff are not stupid

Seeing as the vast majority of RM staff are working in a low paid job that only requires a basic level of reading and inserting envelopes into a letter box, I would suggest that there are likely not many members of MENSA working for RM....

2010 wrote: »

You do not know the price of each share or how many you will get until AFTER they have grabbed your money.

So you assume the worst case and decide if you still think it will be profitable...


In this case it is clearly way over subscribed, so I would expect to make a reasonable profit on day one. I have made a substantial bid, so fingers crossed!

sabretoothtigger

The price was given beforehand, 330 was top of the range so I expect most will get that. I bet the really big buyers get a nicer price still and the underwriters will get paid for doing nothing in the end, nice job

260 would have been nice, if we'd slid on the usa panto antics. That'd been a nice earner

2010

Mickygg wrote: »

Yet you go and buy some anyway??

Today after reading various articles and weighing up probabilities I`ve decided to apply for £5k worth, although not expecting to get the full whack.
It`s a punt but the odds are on a quick buck and I intend to sell asap.
I expect the price to be around the 310p and at the moment the grey price is 368p.

A no brainer because in December they will probably go into the Ftse100 and then the trackers have to buy whether they want to or not.

Hope I`ve explained enough for you take a punt.;)

Colin297

I just applied for £1k of shares there

Any ideas when we'll know the allocation?

I didn't think the money would be deducted until such a decision was made. Since i applied online this was taken via debit card instantly.

If, for instance, i get allocated nothing or say 750, how and when will i get my money back?

Last question - i've never bought shares before and therefore never used the ISA shares allocation. How would i assign any RM shares into my ISA allowance?

jimjames

Troubled2012 wrote: »

Thanks Buzby, must admit I didnt understand your Ackerman reference though.

Do you really think they will not hold their value (or improve slightly) over a few years? I'm just looking for something solid to perform better than bank savings rates.

Cheers

There are far better, less risky things to invest in than single company shares. It's like saying you want something faster than a bicycle and buying a Ferrari!

Many income funds will give you over 4% at much less risk than shares in one company that is in a declining market. Buying expecting to stag immediately is a very high risk option. They may do ok and have a good dividend but your capital isn't guaranteed unlike your savings account.