Markets

Royal Mail shares gain further as formal trading begins

Shares now 50% more valuable than government’s price tag last week

London Stock Exchange Group chief executive Xavier Rolet, chairman of the London Stock Exchange Group Donald Brydon, Royal Mail chief executive Moya Greene, minister of state for business and enterprise Michael Fallon MP and chief secretary to the Treasury Danny Alexander MP opening trading at the LSE in central London this morning. Photograph: Royal Mail Group/PA Wire

Tue Oct 15 2013 - 09:40

Royal Mail delivered more strong gains for shareholders this morning as formal trading started on the London Stock Exchange.

Shares gained another 15p, or 3 per cent, making them almost 50 per cent more valuable than the government’s price tag last week.

In the first day of dealing for many of the 690,000 small investors who bought stock in the highest-profile privatisation for years, shares were up to 490p (€5.78) to value Royal Mail at £4.9 billion (€5.78 billion).

That compares with the 330p per share price they were sold for by the Government on Thursday, which valued the group at £3.3 billion.

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That means small investors who were allocated shares worth £750 are today sitting on paper profits of more than £360 after the shares rose by 160p.

While shares have been traded informally since Friday when conditional trading began, today is the first day of unconditional dealing in Royal Mail stock.

PA

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