Rush to buy Royal Mail shares on flotation day

Rush to buy Royal Mail shares on flotation day
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Questions are already being asked in Britain about the Royal Mail privatisation, where shares soared as soon as the 350 year-old institution was put on sale on Friday.

The government is under fire for pricing the shares too low, as demand far exceeded supply. A quarter of all the shares issued were traded in the first few hours, during which they gained well over 30%.

Over 650,000 individuals were allocated 227 shares each; two thirds of the issue was reserved for institutional investors. If small shareholders were to sell out they would have 160 million pounds to spend, which would add 0.6 percent to UK retail sales.

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