Royal Mail sees its stock climb 38% post-IPO
Royal Mail Group Ltd. experienced a 38% jump in its stock price after its public listing on London bourse.
Shares of London's postal service increased from 126 pence to 456 pence. Trading of Royal Mail stock rose 35% at 445.75 pence around 8AM in London. The increase had put Royal Mail's market valuation at GBP4.45 billion or USD7.1 billion.
The privatization of UK's postal service had raised GBP1.7 billion. The company was oversubscribed that institutional investors' allocation of Royal Mail stock was reduced from 70% to 67% to accomodate other investors. 33% went to small retail investors, an increase due to a sevenfold demand from them.
All retail investors who had subscribed over GBP10,000 worth of shares were given an allocation of 227 shares at 33- pence, which is the maximum offer price. The public offering of the over 300 year-old company was fully subscribed within hours of its debut on September 27.