how many shares?

[comeracing]

Manger in our office said fulltimers were more likely to see around £1500 worth

what does a manager know full of sh*t

[wandle]

The shares will go up.

Then down of that their can be no denying quick sell off quick sell the books will not be for cooking after the sale.

k979aaa, the share offer was massively oversubscribed, both by the general public and the financial institutions.

Some institutional investors, who pitched offers to buy shares below the 330p level, are - according to press reports - not going to be allocated ANY shares at all, in order that the public applications can receive 227 shares each (the closest whole number to £750 - the other 90p of each applicant's investment will be kept by Equiniti).

There's no doubt that some buyers of the shares are looking to make a quick buck, by selling out quickly, at a profit. However, some private individuals are savvy enough to have bought RM shares for the good levels of income they will yield (see below). But the institutions who missed out on the initial allocation are still going to still want to buy shares in the market, next week, and for many weeks after that too, even at a share price above 400p.

Why ? Because the privatised Royal Mail is proposing to pay a dividend in the first full financial year as a private company (i.e. 2014/15) of around 21p per share.
Even if the share price hits 420p, buyers of shares at that price would be getting an income of 5%, when the 21p dividend kicks in. For investors who got their shares at the 330p offer price, 21p equates to a yield of 6.36%, a far greater return than can be had putting £750 into a low-interest-rate savings account.

Furthermore, if the share price stays above 380p, Royal Mail will be big enough to be catapulted into the prestigious FTSE-100 index at the the next review date, scheduled for December 11 this year. Were that to happen, there will be additional buying interest (to counteract the 'quick buck' sellers) from 'tracker funds', who try to emulate the performance of the main market index by holding shares of ALL companies that make up the FTSE-100 Index. So, if RM gains entry into the stock market's Premier League, there will suddenly be a lot of buyers of the shares. If these outnumber the sellers, the price of the underlying shares will likely rise still further.

[teesdale]

2018 prediction £3700, but Equiniti sale charge minimum £25 or 1% (expensive). Total dividends by 2018 £1050.

[nataddick]

The number of ordinary shares transferred to the RM Share Incentive Plan is to be 100,160,000 - per page 211 of the Full Prospectus.

This is 10% of the total shares (1,000,000,000) plus an additional 160,000 per page 175 note 5.

'In connection with the Employee Free Share Offer, as set out in Part IV (Employee Free Shares Offer) of the Securities Note, 10 per cent. of
the issued share capital of the Company plus an additional 160,000 Ordinary Shares will be transferred to the trustee of the Royal Mail Share
Incentive Plan on or immediately after Admission. This will be accounted for as a capital contribution by the Company, at the fair value of the
shares transferred to the trustee, with an equal and offsetting amount shown as a deduction within equity as Treasury shares. At this stage, it
is not possible to determine the fair value of the relevant shares and therefore the amount of any adjustment. There will be no impact on
assets, liabilities or total equity.'

The number of shares per employee should be 100,160,000 divided by approx 150,000 less those that opted out (371) which is approx 669 each.

[Shambles]

Mmmm...and RM will be aiming to relinquish some Full time Posties of their jobs via trumped up charges to gain their shares, because they WILL try to pick us off, one by one, over the next 3 years....

WHY have imposed the 3yr clause?
We all need to be vigilant, and if we see others being singled out for 'special managerial treatment'
Be A Witness!
We are all sitting Ducks now!
You know it makes sense Rodney, you Plonka!

[Shambles]

The number of ordinary shares transferred to the RM Share Incentive Plan is to be 100,160,000 - per page 211 of the Full Prospectus.

This is 10% of the total shares (1,000,000,000) plus an additional 160,000 per page 175 note 5.

The number of shares per employee should be 100,160,000 divided by approx 150,000 less those that opted out (371) which is approx 669 each.

Mmmm...my calculations must be wrong b'cos I made it 666

[wandle]

In answer to the "how many shares?" question ...

It will be more than 669 shares each, because part-timers only receive a pro-rata allocation. (and before anyone flames me, I think that policy is very unfair).

How many of the 150,000 employees are on less-than-39hr contracts (i.e. part-time) ?

If, say, 20% of employees are on 30-hour contracts, and each of those is only entitled to a less-than-full allocation (my calculation: 76.92% of a full allocation), then the 'average' figure of 669 shares will be an under-estimate.

If everybody, whether FT or PT was entitled to an equal allocation, then each block of 100 employees would receive 669 shares, i.e. 66900 shares for those 100 employees.

However, under the pro-rata allocation that the ConDems imposed, if the 80 full timers received 701 shares each, the 20 part-timers would be entitled to 539 shares each

701 x 80 = 56080
539 x 20 = 10780
(total shares per 100 employees = 66860, which is as close to the 66900 figure as I could get to, given that only whole numbers of shares can be allocated)

So, simply dividing the total number of shares the government has allocated to employees by 150,000 does not give a true indication of the likely allocation. Lazy journalists, who could not be bothered to do the calculations, came up with this 'postmen will receive £2000 worth of shares' quote by just working out a straight average. But in actuality, much hangs on the full-time to part-time ratio, when it comes down to how many shares constitutes a full allocation. But it will certainly be more than 669 shares for full-timers

If full-timers end up with 700 shares apiece, and the share price closes at 330p the first day of full trading, the shares will be worth £2310. If press reports prove correct, however, and the shares close at around 390p on the first day of full trading, the shares will be worth £2730. Either way, a dividend of 14p per share, will give us a cheque for £98 in July 2014

Someone on a 30-hr contract, receiving say 538 shares, would at the 390p price, hold shares worth £2098.20, and receive a dividend of £75.32 in July 2014

[nataddick]

An interesting point Wandle but I think the 150,000 is based on Full Time Equivalents employed !

[Darren Bent]

and the managers won't cook the book as they will want the shares to be highest as possible so they can sell it in 5 years. It is different to colleague shares scam.

[wandle]

An interesting point Wandle but I think the 150,000 is based on Full Time Equivalents employed !

If you're correct, and there are part-timers to be added to the 150,000 figure, we will receive LESS than the 669 'average' figure

[Shambles]

An interesting point Wandle but I think the 150,000 is based on Full Time Equivalents employed !

If you're correct, and there are part-timers to be added to the 150,000 figure, we will receive LESS than the 669 'average' figure

Told you it was 666

[wandle]

An interesting point Wandle but I think the 150,000 is based on Full Time Equivalents employed !

If you're correct, and there are part-timers to be added to the 150,000 figure, we will receive LESS than the 669 'average' figure

Told you it was 666

The whole thing's a shambles, Shambles
Your calculation is positively beastly

[Shambles]

An interesting point Wandle but I think the 150,000 is based on Full Time Equivalents employed !

If you're correct, and there are part-timers to be added to the 150,000 figure, we will receive LESS than the 669 'average' figure

Told you it was 666

The whole thing's a shambles, Shambles
Your calculation is positively beastly

Take the plum out of your mouth please, and do NOT slander my well respected name, else I will set the on you

[wacko74]

2018 prediction £3700, but Equiniti sale charge minimum £25 or 1% (expensive). Total dividends by 2018 £1050.

Nothing stopping us from transferring them to another broker with more reasonable selling charges though.

[flaminmoses]

sky just actually mentioned the cwu ballot.

so if people realise what the implications are expect shares not to be up much by start of official trading.

have you got the balls and morals to ignore the shares for your terms and conditions?