Royal Mail Shares

alanq

tuk wrote: »

...do we have any examples of a government backed flotation making a loss on the first day?

BP 1987? A tranche of shares in an already partially privatised company were offered at what turned to be higher than the market price on the day that they became available for trading.

2010

alanq wrote: »

BP 1987? A tranche of shares in an already partially privatised company were offered at what turned to be higher than the market price on the day that they became available for trading.

You forgot to mention that Black Wednesday happened in between so they were not normal circumstances.

BarleyGB

tuk wrote: »

Surely the probability either way is not 50/50? ...do we have any examples of a government backed flotation making a loss on the first day?

We dont have any examples of any similar flotation on the back of the worst financial crisis in history. Who's to say something worrying wont come out the EU, China, US Budget Freeze or Debt Ceiling plunging the FTSE next week? It wouldnt take much to push it under 6000, its well on the way this week.

Old_Slaphead

2010 wrote: »

You forgot to mention that Black Wednesday happened in between so they were not normal circumstances.

Even though the market crashed over 20% in the initial offer period - some people still put in multiple applications !!

Popz

Royal Mail Shares - what happens next
http://www.theguardian.com/money/2013/oct/09/royal-mail-shares-trading

Is it worth a new thread for those who have taken the plunge with RM shares and are looking for advice on what to do next?

tuk

BarleyGB wrote: »

We dont have any examples of any similar flotation on the back of the worst financial crisis in history.

The UK economy wasn't exactly healthy in the 80's when the other big government flotations happened ....even though the recent financial crisis was bad, the country generally seems wealthier now than back then.

fiat127

Does anyone know how scaling back was worked out in previous privatisations? Presumable any private individual asking for 40k worth of shares might risk an allocation of zero?

tuk

Talking of previous privatisations ..in the short term, did the price always peak on Day 1?

2010

tuk wrote: »

Talking of previous privatisations ..in the short term, did the price always peak on Day 1?

Good article to read here:

http://www.theguardian.com/money/2013/oct/09/royal-mail-shares-trading

Glen_Clark

gadgetmind wrote: »

It wouldn't but such is the way with deeply-held principles: you don't always do things because they will make a difference but because you want to make a stand for what you think is right.

But there is more than one way to maker a stand, some ways more effective than others.
Look at Warren Buffet. He says 'The rich should pay a greater share of the tax' 'My class started the class war and they are winning' 'My fortune will go to the poor because I don't believe in unearned (inherited) fortunes' etc
And he is listened to a lot more because played the system, than he would have been listened to if he had made a different kind of stand by refusing to have anything to do with it.
You can do more from the inside, than you can from the outside.