Royal Mail was valued by investment banks at up to £5bn in June, 50 per cent more than the price at which the UK postal operator was sold to the public a week ago.
At least two investment banks pitched a maximum price of around 500p at the beauty parade convened to select the underwriters to the offering. The shares were finally sold to investors at 330p. The postal company’s share price crossed the 500p mark for the first time on Friday. Neither of the banks in question was awarded the mandate.