Royal Mail shares jump to 487p on first day of float

Shares in Royal Mail jumped 2.5% to 487p as it officially floated today, following a flurry of trading activity in the stock prior to its listing.

The newly privatised business has caught the interest of investors, some of whom wanted to profit from short-term selling of the shares, or stagging, in the first days of its listing. The government sold shares in Royal Mail for 330p, leading to criticism it undervalued the business in a share issue which was seven times oversubscribed, according to some reports. The stock climbed to as much as 475p in grey market trading on Monday. A panel of MPs intends to question the bankers who advised the government on the pricing of the IPO, according to a report by Sky News. Meanwhile, a gr...