Royal Mail shares ‘to be priced at top end’

<p>Royal Mail shares will go on sale at around £3.30.</p>

Shares in Royal Mail will go on sale this week at the top end of the government's estimate.

Hundreds of thousands of applications for shares in the company were submitted ahead of this week's deadline and the firm will publicly float on the stock market on Friday (October 11th).

The government is set to sell 52.2 per cent of the company, which was the maximum it was prepared to sell at this stage, reports BBC News.

As a result of the privatisation of Royal Mail, the Treasury can now expect to receive £1.7 billion.

Business secretary Vince Cable told a government committee earlier in the week that shares in the company have not been undervalued.

Shadow business secretary Chuka Umunna had claimed hedge funds and investors would make money out of the firm's sale, rather than the cash going to the taxpayer.

Panmure also estimated the value of the company to be more than £1 billion higher than the government's valuation of between £3 billion and £3.3 billion.

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