Royal Mail Shares

2010

Bankers pointed out that the figure was "in one sense meaningless" because so many investors had inflated their orders on the assumption that they would be scaled back.

"Many institutional buyers are going to end up with zero or 5% of what they ordered," said one. "There has been a deluge of overbidding."

Michael Fallon, the Business Minister overseeing the privatisation, has pledged that retail investors will receive their "fair share" of the stock although firm details of the share distribution are unlikely to emerge until Friday.

http://news.sky.com/story/1151723/royal-mail-city-demand-for-shares-tops-30bn


If the above is true then the greedy institutional buyers will have to buy from the retail sector!!!

dealsearcher

What this IPO has shown is the extraordinary amount of spare cash there is sloshing about in this country. Apparently institutional buyers have massively oversubscribed and, even from the evidence of this thread, private buyers have loads of spare cash as well!

This IPO may have the effect of kick starting the economy. If people feel good about investing again the confidence shown in this IPO may just be the start of investment in the economy again.

Perelandra

2010 wrote: »

If the above is true then the greedy institutional buyers will have to buy from the retail sector!!!

I think the only buyers initially are going to be the institutional ones; the "public" are mostly selling (as has been pointed out above- do you know anyone who is intending to buy after they start trading?).

Without that demand, the project £4 opening price will be hard to hit!

2010

Perelandra wrote: »

the "public" are mostly selling (as has been pointed out above- do you know anyone who is intending to buy after they start trading?).

You can`t possibly know what the thousands of "public" are going to do.

When they start trading there has to be both buyers and sellers to create a market, so yes there will be buyers.

BarleyGB

2010 wrote: »

You can`t possibly know what the thousands of "public" are going to do.

When they start trading there has to be both buyers and sellers to create a market, so yes there will be buyers.

I see this as a buy, I think RM shares have a potential for real growth over the medium & long term (maybe even the short term, could be looking at 500p a share in a year?). Its unlikely ill get even 25% of what I applied for so will be in to make up to about 60% of my share bid (what I nievely estimated it would be cut down to).

If many people have £750, £1000 allocated is it really worth it to sell in the early days for a 10-20% return less dealing charges?



Esure has been a bit of a dog but Direct Line has been showing reasonable performanace since its IPO and though surpressed slightly in recent weeks with the large dividends paid its been a cracking investment.

latecomer

If it does surge on opening I'll probably sell whatever allocation I get, if the price subsequently drops I may buy some back to hold for the longer term. For me is about hopefuly getting a quick return and also a move out of cash ISA and into equities (not RM, thats just the motivation to get me started).

CRISPIANNE3

BarleyGB wrote: »

If many people have £750, £1000 allocated is it really worth it to sell in the early days for a 10-20% return less dealing charges?


UNQUOTE


This has to be the silliest quote this year. Of course its worth selling for a 10-20 percent return compared with what the money would earn held in a savings account.

:rotfl:

Yorksport

This reminds me of the '80s and the buzz about share buying which was triggered by the big privatisations. Deja vu all over again! I hope individuals stay longer in the stock market this time: there are always opportunities so don't just leave it to the institutions.

SailorSam

For those of you who missed out and didn't manage to buy before the deadline ..........
If you make me a decent offer we maybe able to come to a deal.

Cotta

Is it now too late to buy Royal Mail shares?