Britain confident that Royal Mail IPO will value USD5.3 billion
On Friday, the British government said that the sale of its universal postal service The Royal Mail would be valued at a whopping GBP3.3 billion or USD5.3 billion. The Royal Mail would be making its debut on the London bourse next month.
The British government would be disposing a majority stake in the 500 year-old company at a share price in the 260 pence to 330 pence or GBP2.60 and GBP3.30 apiece.
The share sale would be closing on October 8. It would also see Britain selling off its ownership at around 40.1% to 52.2%. The government of the UK would also be giving away 10% of its shares in the postal service to staff members, making the endowment the largest done in a British privatization.
Investors would be able to spend a minimum of GBP750 to purchase a piece of Royal Mail. UK also said that as much as 70% of Royal Mail would be purchased by institutional investors.
Goldman Sachs and UBS were tapped to manage the Royal Mail listing, which would be debuting on October 11.