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Britain floats Royal Mail this financial year through an IPO

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July 10
9:21 AM 2013

On Wednesday, Britain revealed its strategy to float a majority share in Royal Mail, its postal operator. The plan would transpire before this financial year ends. Britain promised free stocks for workers. This opposed the nation's largest privatization for so many years.

Royal Mail originated in 1516 during King Henry VIII's reign. Its initial public offering was anticipated to value the postal operator higher than GBP3 billion equivalent to US$4.45 billion.

10% of the stocks would be put aside for the company's 150,000 postal workers. Vince Cable, the Business Secretary, told the parliament that the stocks would be given free of charge. The terms of the promise reported that the stocks should be held for three years or it would not be distributed for free.

The listing would also include a retail proposal for smaller capitalists. The Royal Mail employees would get priority treatment for this.

The government hired Goldman Sachs and UBS to advise it regarding the flotation.

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