Indications that no retail offer expected
Government sells half of remaining stake in Royal Mail
The sale of 15% of the company, representing half the Government’s stake, raised £750 million. The Department of Business Skills and Innovation said the shares were sold for 500p each – a modest discount to yesterday’s closing price of 516.5p.
They were 3% lower this morning at 499.5p.
Bank of America Merrill Lynch, Goldman Sachs and JP Morgan ran the sale, while Rothschild advised Royal Mail.
The BIS said it will not sell any more of its Royal Mail stake for 90 days but yesterday’s exercise suggests the government is not intending to offload more share to the public. Retail investors were targeted in the controversial 2013 stock market listing when the government was accused of selling shares too cheaply.
They rocketed from a 330p flotation price to 600p allowing many institutional buyers to make an enormous profit.