Royal Mail 8216 was valued at 5bn 8217

Investment banks valued Royal Mail as highly as £5 billion this summer.


Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

The government has again come under fire for selling Royal Mail at a low price.

Investment banks valued the organisation at £5 billion this summer, but it floated on the stock market earlier in the month at a valuation of around £3.3 billion.

Despite shares having only been available for open trading for a few days, stocks in Royal Mail have already exceeded the 500p mark that would value the firm at £5 billion.

According to a report by the Financial Times, neither of the two investment banks to have valued Royal Mail at £5 billion were involved in the sale of the institution.

The Labour Party previously criticised the government for selling shares in Royal Mail for too low a price, but business secretary Vince Cable has defended the decision.

Shares in Royal Mail have continued to rise in value this morning (October 21st). At 08:33 BST today, stocks in the firm were trading 4.28 per cent higher than at the start of the session.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar