Royal Mail shares jump on flotation

<p>Shares in Royal Mail have shot up this morning.</p>

The share price of Royal Mail has rocketed this morning (October 11th) as the firm floats on the stock market for the first time.

Shares in the company went on sale for 330p per share at the start of the session and in the first hour of trading are already up to 456p.

The general secretary of the Communication Workers Union, Billy Hayes, has described the privatisation of Royal Mail as a "tragedy" and a "sham".

Mr Hayes told BBC Radio 4's Today programme: "This is a sham, really. The company has been under-valued. It's basically David Cameron rewarding his mates in the City."

The union leader also accused business secretary Vince Cable – who has claimed the government did not undervalue Royal Mail – of getting the decision to sell Royal Mail wrong.

Shares in Royal Mail were massively oversubscribed before trading on the stock exchange began this morning, with 700,000 applications to buy stock in the company.

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