From the Guardian:
Royal Mail delivered more strong gains for shareholders on Tuesday as formal trading started on the London Stock Exchange.
Shares gained another 15p, or 3%, making them almost 50% more valuable than the government’s price tag last week.
In the first day of dealing for many of the 690,000 small investors who bought stock in the highest-profile privatisation for years, shares were up to 490p to value Royal Mail at £4.9bn.
That compares with the 330p a share price they were sold for by the government on Thursday, which valued the group at £3.3bn.
Small investors who were allocated shares worth £750 are now sitting on paper profits of more than £360 after the shares rose by 160p.
And the Financial Times reports that MPs will question representatives of Lazard, the investment bank, over “concerns that institutional investors were allowed to buy into the company too cheaply”:
The government has come under heavy criticism for allowing Royal Mail to be priced at 330p as the shares briefly touched a new peak of 490p in the first day of unconditional trading on Tuesday
However, one person involved in the business select committee said responsibility for the pricing lay with the government’s advisers rather than ministers. The person expressed fears that institutions had been allowed to buy into Royal Mail on the cheap.
The Financial Times reported on Saturday that strong demand for the controversial privatisation prompted the government to explore whether it could extract a higher price, but key institutional investors signalled they would drop out if they had to pay more than 330p a share.