Royal Mail shares jump to 450p

The price of Royal Mail shares has soared well above the government's offer price after conditional trading in the company began this morning.

In a move which exceeded expectations, shares in the Royal Mail jumped 36% from the government's offer price of 330p to 450p just after 8am when they begun trading in the grey market. Demand for shares has far outstripped supply, with almost 700,000 private investors applying. In total the retail share offer was seven times oversubscribed, prompting criticism that the privatisation undervalues Royal Mail. Private investors who applied for the minimum £750 up to £10,000 will receive shares worth £749.10. Applications for more than £10,000 will receive nothing. Royal Mail employee...