Royal Mail float

[wurzel]

How do you sell them if you apply direct through the Gov website? They give you the option or do you have to transfer them to a broker? I did see an article that going direct means it would cost you more to off load them?

Royal Mail share buyers face a big bill if they choose Government's dedicated site

[gingerjedi]

I'm not having much luck trying to amend my order, their (HL) helpline number has been engaged all day.

Has anyone cancelled and re-applied for more?

[RedSauce]

I'm not having much luck trying to amend my order, their (HL) helpline number has been engaged all day.

Has anyone cancelled and re-applied for more?

I initially went for 8k (on H&L), but cancelled that and put another order in for 11.5k, seems to have gone through ok.

[darmstadt]

Already printed mine off and sold them to a bloke down the pub, quids in...

[gingerjedi]

I initially went for 8k (on H&L), but cancelled that and put another order in for 11.5k, seems to have gone through ok.

Finally got through and increased the amount, refreshed web page and there it was.

[RedSauce]

The sceptic in me is wondering if all these stories of 10x over subscription and 40% gains to be made are just a means for the government to get the better off to buy over-valued shares.

[PEEL]

From the Lex in the FT:

"It is the last posting date – and not even Christmas. UK ministers hope to unwrap a chunky present when a final price for Royal Mail shares is announced on Friday. Word late last week was that it will be set at the upper end of the anticipated 260p to 330p range. Investors have until Tuesday midnight to put in applications for the stock. Will they miss a bargain if they do not?

Royal Mail’s share prospectus was weighty but unsurprising. Which leaves investors with a now-familiar business case. The group faces a relentless decline in its letter volumes but has a parcel delivery business benefiting nicely from ecommerce. Modest sales growth looks possible, with good scope to increase margins – low by European peer standards – as mechanisation and efficiency benefits build. Net debt at the end of June was £800m, so enterprise value ranges from £3.4bn to £4.1bn over the indicated offer price range.

That is 5 to 6 times 2012-13 earnings after transformation costs. Shares in Belgium’s bpost floated in June on a 5.5 multiple and have been flat since. Austria Post trades on a historic multiple of 6.5. True, Royal Mail does not have post offices to run. But it does face labour unrest. And news that TNT will extend direct deliveries next month to customers in Manchester is a reminder of the competitive threats.

Dividend yield is the other factor – an implied 7.7 to 6.1 per cent across the offer price range. Generous payout policies add no value, but they can suit some investors. Again, though, look at peers: bpost yields 7 per cent (on the 2013 consensus figure); Austria Post offers 5.5 per cent. Anyone seeking more than 4.5 per cent in the FTSE 100 will find oils, insurers and utilities as the main choices, most carrying some risk. Vodafone, though, offers 4.6 per cent.
At the low end of the price range, Royal Mail shares have some appeal. At the upper end, investors have other options."

There is also another article in the FT giving indications based on spread-betting companies that are seeing Royal Mail of a midpoint at about 400pence.

[Peoplesoft bloke]

BT,British Gas,British Airways.

BT - it took minimum 3 months to get a new phone line or one fixed. Old technology PABXs were all that were on offer. I worked for a BT supplier, we were trying to sell them the technology common in the US they weren't interested before privatisation.The exchanges were falling apart. After privatisation our telecoms network became world leading again.

It takes about the same to get a fault fixed now - if you can.

Just been quoted 1 month plus for a new line install. They are crappy privatised near monopoly and I seriously doubt they'd have been much worse (hard to see how they could have) if they'd remained in public ownership.

[SueEllen]

It takes about the same to get a fault fixed now - if you can.

Just been quoted 1 month plus for a new line install. They are crappy privatised near monopoly and I seriously doubt they'd have been much worse (hard to see how they could have) if they'd remained in public ownership.

Ahh but openreach are a different company to BT retail.

[DodgyAgent]

Have put in for a quarter of a million, but don't expect to get all of them. Hopefully half.

Zimbabwean lira?