I am interested to hear any opinions about the proposed Royal Mail floatation. Will it remain a croc and sink or will it open at a premium and fly?

RTS?

I think its actually RMG ?

My daughter is "having a go" and likes the idea of doing it on the Royal Mail web site and paying by Direct Debit. After chatting with me about the 'old days of privatisations' and IPOs, she feels this method will tell her immediately as to whether her application is likely to be successful.

I was telling her how in the old days, just pinning your cheque in the wrong place on the application form or even using a safety pin instead of a regular pin, could invalidate the form, with the result the application would be unsuccessful - and you thus wouldn't get any shares.

People used to 'stag' the offers (use any and all immediately available cash, even by borrowing some, so as to buy shares and sell their holding immediately the shares hit the market). Thus if they were doing this it was very important to be able to know:
Q1. If you had been granted shares and
Q2. If so, how many.

I had a go at stagging one or two issues myself:

A1. This could be ascertained by whether the application form's cheque had been presented. If it had, then you knew 'you were in'.
A2. This info' was in the press or on TV and a quick calculation, if 'you were in' was all that was needed to be able to deal without actually holding or yet being in possession of your share certificate.

She doesn't yet have a Trading Account with anyone so she yet needs to get that sorted
She has also decided to request a Share Certificate with her online application.

Anyone any comments? Is she doing the right thing with her methodology?

If holding then it hardly matters. Tuck the cert away somewhere safe.
I seem to recall a lot of brokers ready to offer deals to sell with share certs. but if looking for quick out she'll need to wait for the paper to arrive first.
Also fwiw I think all applications beyond the minimum will be scaled back as it is oversubscribed.

I see broker Charles Stanley has changed it's charges for CREST accounts and paper certificates to annual charge of £480 (execution only, new clients) & £50 transaction charge (certificate)+ £15 dealing fee. The idea is to put pressure on clients to move to pooled nominee accounts and internet dealing only. I wouldn't be surprised for others to follow suit as the costs of producing paper certs is getting higher as demand falls.

Britain set to price Royal Mail sale at top of range - sources


LONDON | Tue Oct 8, 2013 11:44am BST
(Reuters) - Britain is on track to sell shares in Royal Mail at the top of its range, two sources close to the deal said, valuing the postal service at more than $5 billion (3 billion pounds) on the final day that investors can put in orders.

Despite the threat of strike action from delivery staff and criticism from opposition lawmakers, the government is close to completing the sale of a majority stake in the near 500-year-old Royal Mail - the fourth attempt to sell off the postal service.

The privatisation, which at the top of the expected price range would value Royal Mail at 3.3 billion pounds ($5.3 billion), is Britain's biggest since John Major's Conservative government sold the railways in the 1990s.

The stock market offering has received strong demand from the outset, and investors have now been told those with orders below 330 pence per share, the top of an original 260p-330p range, risk missing out, the sources said.

Investors have also been warned that, due to strong demand, they should expect their orders to be scaled back.

The financial spread betting firm IG is predicting the shares could close between 385 pence and 405 pence on their stock market debut on Friday.

IG Chief Market Strategist David Jones said the success of past big privatisations such as BT and British Gas was probably attracting retail investors.

"People have got memories about how well these government sell-offs did back in the 1980s and 90s," he said. "With those, there were decent windfall profits on the first day."

Despite the strong demand, many members of the public are against the sale, with a YouGov survey in July showing two-thirds of British adults opposed the privatisation.

The government has said around 30 percent of the shares on offer are expected to go to individual members of the public, who must spend a minimum of 750 pounds to invest in the company.

It has also agreed to hand 10 percent of Royal Mail's shares to staff in the largest share giveaway of any major UK privatisation. If they are distributed equally among the 150,000 eligible UK-based workers, each could receive 2,200 pounds' worth.

POLITICAL OPPOSITION

The sale of Royal Mail follows the flotation of its Belgian peer bpost in June and comes as strong equity markets have helped to revive new listings in Europe this year. European flotations raised $15.9 billion in the first nine months - three times the year-ago level, according to Thomson Reuters data.

On Tuesday, vodka maker Stock Spirits began taking orders for its London share sale, while the debt collection firm Arrow Global saw its shares open higher on their London debut.

Cantor Fitzgerald analyst Robin Byde has estimated Royal Mail is valued at around 8 times earnings, below an average of about 10 for the European sector, including peers such as bpost and Austrian Post.

On Monday, British Business Secretary Vince Cable accused the opposition Labour party, which has said taxpayers could be short-changed by the sale, of irresponsibly talking up the value of Royal Mail.

Labour is opposed to the timing of the sale, which it says is designed to bolster Britain's public finances, but has resisted calls from party activists and trade unions to pledge to renationalise the firm if it wins power in a 2015 election.

Three sell-off attempts in the last 19 years have failed due to opposition from within the governing majority, which feared an electoral backlash from tampering with a revered institution.

Unions are currently balloting for strike action, although the ballot will close after Royal Mail makes its market debut.

Institutional investors have until 1600 GMT to put in orders for the sale, being run by Goldman Sachs and UBS, while individual retail buyers have until 2259 GMT.

($1 = 0.6219 British pounds)

Royal Mail shares 'seven times over-subscribed'

The Royal Mail share-offering for private investors was seven times over-subscribed, with 700,000 applications in total, according to the Business Secretary Vince Cable.

Speaking to a committee in parliament, he said he was "confident" the shares were "priced in the right place".

I don't know what it means for the immediate future, but I can assure you that there is a good deal of unrest among the staff about this whole thing.

Not sure that will have any effect on the outcome. As explained in a TV documentary recently, Royal Mail are now profitable (just) and need to compete with UPS, Fedex, TNT and others in a competitive parcel/package market. Letter volume has dwindled dramatically so Royal Mail has had to adapt. I'm sorry for those that have lost their jobs, but it makes the jobs of those that are left far more secure, imo.

Graeme Wearden‏@graemewearden31m
MPs grill Vince Cable over Royal Mail's (much over-subscribed) flotation: 5 key points

http://www.theguardian.com/business/2013/oct/09/us-debt-deadlock-keeps-gnawing-at-markets-live#block-525574d3e4b072f7f7f2a97c

Posted on Twitter.....

harry - i wonder if privatisation will lessen the incidence of theft and mail being opened en route

Are you taking part cynic???????.

Im not touching it with a barge pole.

Come wed and no ceiling agreed theyl fall like a lead weight.

Mr C., to be fair to my local Royal Mail they have performed really well, on time & very friendly over the last ten years. I have not had any cause to complain and they are the last and only service to get a Xmas tip from me. In the old days, the dustmen, coal merchants, milkman etc all got Xmas tips from my parents. The postman is the last of the neighbourhood services which has a human touch. Shame to see them go, imo, but that's progress and I think even these guys see that change has to happen as they are all a bit embarrassed at having to deliver junk mail in place of real letters.

I give an xmas tip to my window cleaner.

I hope he declares it! :-)

Skinny doesnt need to its a gift. See present Income tax Laws.

BBC have said 330p will be the float price.

And they reckon it could hit 400p on first day.

Daily Spread bet may be a good way to play this.

IG quoting 3950 - 4150.

ehhhhhhhhhh tight so and sos.

plan down the swanny.