Royal Mail Shares

barak

lozzer wrote: »

I applied for £2000 worth of shares and this was withdrawn from my account yesterday. Does this mean I have been successful?

No! You'll get some - and if your application is scaled back to less than £2000-worth - a cheque for the balance.

Perelandra

522million shares being sold at £3.30 each
About 30% to go to retail investors
700,000 retail investors

What's the betting it's a flat £750 for everyone?

SnowMan

Perelandra wrote: »

522million shares being sold at £3.30 each
About 30% to go to retail investors
700,000 retail investors

What's the betting it's a flat £750 for everyone?

Yes it is looking that way, as illustrated numerically in this post.

Unless there is some use of the over-allotment 'bank' of 78,260,870 shares or the 30%/70% ratio is changed it pretty much has to be.

They won't want to scale back those applying for £750 while giving more than £750 to some of those private investors applying for more than £750.

Perelandra

SnowMan wrote: »

Yes it is looking that way, as illustrated numerically in this post.

Unless there is some use of the over-allotment 'bank' of 78,260,870 shares or the 30%/70% ratio is changed it pretty much has to be.

They won't want to scale back those applying for £750 while giving more than £750 to some of those private investors applying for more than £750.

*nods* agree- the BBC have confirmed the 522m shares figure now (which you didn't have earlier in the afternoon), so it was further confirmation about what you'd originally said.

Ologhai

The BBC have just announced (on the 8am bulletin on Radio 4) that private investors who have requested more than ten thousand pounds' worth of shares will get none.

Everyone who requested less than that will get a minimum of £750's worth. No info yet on how many extra shares will be allocated to those who requested between £750 and £10,000's worth.

ssg0987

Quick question for any financial Savvy people on here.

So I have purchased shares through the Royal Mail website completely disregarding any stock brokers. Deadline of course is closed. There is an option to receive share certificate or Royal Mail nominee account.


1) What would be the best option to choose out of the above options?
2) If I planned on holding for the short term what would be the best efficient way to hold them? Move to a nominee account with a stockbroker?
3) If I planned on holding for the long term what would be the best efficient way to hold them? Tax free ISA, potentially incurring fees VS Share certificate?

I read a couple of points which are both for and against holding in an ISA.....Thoughts anyone? Thanks

"If you buy the shares through a broker and later put them into an Isa or Sipp, the shares are sold and instantly repurchased inside the tax-efficient wrapper, which would incur a £11.95 fee with Hargreaves Lansdown, plus stamp duty."

"No commission is charged for putting the shares into an Isa or Sipp at launch, however brokers will make an annual charge to hold them. Hargreaves Lansdown, for example, charges 0.5 per cent."

"Of course outside an ISA, 10% income tax will be automatically deducted from dividends, and there will be CGT on any gain over the current exempt amount of £10,900. So she would have to pay CGT when she sells only if the profit is over £10,900, and it will be 18% on the profit over that amount (or 28% if she pays higher rate income tax). So it's up to her whether it is worth paying the admin fees for an ISA in order to save that. On 10k of shares, obviously they would have to double in value to pay any CGT at all, and the fees might be more than the income tax saved on dividends. In which case it might be cheaper NOT to have an ISA."

MobileSaver

Ologhai wrote: »

private investors who have requested more than ten thousand pounds' worth of shares will get none.

If true that's one way to really pee off the very people who would traditionally vote Conservative in the next election... a brave decision given Labour will almost certainly raise the RM sell-off as a political football come 2015; reminding well-off floating voters how they were denied a share of the RM pie.

latecomer

Ologhai wrote: »

The BBC have just announced (on the 8am bulletin on Radio 4) that private investors who have requested more than ten thousand pounds' worth of shares will get none.

Everyone who requested less than that will get a minimum of £750's worth. No info yet on how many extra shares will be allocated to those who requested between £750 and £10,000's worth.

What a great way to get the public onside - ensure that everyone who applied for a little amount gets something but only Dave's mates in the city get anything larger than £10k. Why not give all the allocation to the public and then let the city buy it as the public sells to get their small windfalls?

silvercar

Ologhai wrote: »

The BBC have just announced (on the 8am bulletin on Radio 4) that private investors who have requested more than ten thousand pounds' worth of shares will get none.

Everyone who requested less than that will get a minimum of £750's worth. No info yet on how many extra shares will be allocated to those who requested between £750 and £10,000's worth.

There is a logic in saying that anyone who wanted a 5 figure amount won't actually be interested in a piddling £750 worth.

latecomer

I'm not sure about that. I suspect most people would be happy to get something, I certainly will be. I believe most people want a quick profit and a small quick profit it infinitely better than none at all.