Royal Mail: Pricing of Shares

Lord Young of Norwood Green Excerpts

Tuesday 22nd October 2013 Lords Chamber

[Lord Popat]

My Lords, the prospectus was very clear about the risks involved in acquiring these shares. With regard to small investors, we allocated around 18% to retail investors. Ninety per cent of the retail investors who applied for shares up to £10,000 took up the shares knowing what the risks would be.

[Lord Young of Norwood Green (Lab)]

My Lords, can the Minister explain the contradiction between the Secretary of State’s claim that value for money was central to the Government’s strategy, given the current share price of over £5, and the view of many respected analysts that the offer price was seriously undervalued and 20% oversubscribed by banks? Can he give the House an assurance that the remaining 38% of shares will not be sold at another knockdown price?