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Royal Mail shares rocket


Royal Mail shares rocketed by as much as 38% at the start of conditional dealings, peaking at 456p per share, from an original pricing of 330p per share.
The first day of conditional dealings of Royal Mail shares on the London stock exchange saw shares rocket, pricing the company at over £3.3 billion, raising debates that the privatisation of the Royal Mail was undervalued. However, Vince Cable, business secretary claimed that this was not the case, and the tax-payer had not been ‘short-changed.’

Whilst the shares aren’t officially listed until Tuesday 24th October, conditional dealings began on Friday, with over 10 million shares being traded within the first 30 seconds of the market being opened. However, trading did ease back a little after the first hour, with prices scaling back to around 444p per share.


The news has led to others claiming that the Royal Mail had been undervalued, and in turn short-changing the tax-payer. Bill Hayes, secretary of the Communication Workers Union, shared this viewpoint, claiming that the privatisation had been a “tragedy” and even went on to suggest that David Cameron was “rewarding his mates in the city.”

Vince Cable, however, vehemently rejected these claims, telling the BBC that the bulk of the shares had been bought by “long-term stable investors,” and that what matters is “where the price eventually settles in three or six month’s time.”

Therefore, potentially suggesting that the high profile situation was aiding in the volatility of the shares prices, and that it’s possible that these prices are likely to be scaled back in the medium to long-term.

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