11 October 2013
What we have learned so far
I told you three weeks ago that they were flogging off Royal Mail on the cheap. Given the levels of over-subscription to buy the shares, both on the part of the retail investor and on the part of the institutional investor, that now seems obvious. So the taxpayer will have been seriously short-changed. We will find out later this morning by just how much, but it is likely to be well over 20%. Will anyone resign? Will any of the financial advisers be denied their fees?
Why was so much (70%, now reduced to 67%) reserved for institutional investors? How can the government possibly defend itself from accusations that they were filling the pockets of their chums in the City? And at the expense of, first, the taxpayer and, second, the retail investor who sees his allocation cut to less than £750 or in some cases eliminated altogether.
What an utter shambles.
Disclosure: I applied for £3000 of shares and will receive shares at a cost of £749.10.