priority shares

[wacko74]

I've applied for some, but I'm hearing lots about the issue being heavily oversubscribed and peoples allocations being quite drastically scaled back... is this likely to apply to us or should we get our full requested allocation as we've supposedly got 'priority'?

[RobertT]

I've applied for some, but I'm hearing lots about the issue being heavily oversubscribed and peoples allocations being quite drastically scaled back... is this likely to apply to us or should we get our full requested allocation as we've supposedly got 'priority'?

You will get priority for the first £10,000 you want to purchase assuming you go through the EPO. If you buy through a stockbroker, you'll be treated as a normal member of the public so you may not get the full amount you apply for.

[cloherty1976]

RobertT I have applied for a lot of shares last week but now seeing they are likely to be priced so high do you still think they are going to rise or fall at the start? I am only saying this as have bought on ig index all week and have made nice profits but as they say shares can't keep rising.reason being I might sell on the markets if this is likely..

[RobertT]

RobertT I have applied for a lot of shares last week but now seeing they are likely to be priced so high do you still think they are going to rise or fall at the start?

There are reports suggesting RM is under priced at the £2.60 - £3.30 Billion mark which suggests the price may well rise at first. But there's also the possibility of a strike which could lower it again. Personally I do think they will rise initially but not by much. So there won't be much money to be made in the first few weeks for the average small time investor due to dealing charges, etc. I think it's more of a medium term share.

[cloherty1976]

RobertT I have applied for a lot of shares last week but now seeing they are likely to be priced so high do you still think they are going to rise or fall at the start?

There are reports suggesting RM is under priced at the £2.60 - £3.30 Billion mark which suggests the price may well rise at first. But there's also the possibility of a strike which could lower it again. Personally I do think they will rise initially but not by much. So there won't be much money to be made in the first few weeks for the average small time investor due to dealing charges, etc. I think it's more of a medium term share.

Yes that is what I think too just a little worried buying them at £3.30 and upwards and they fall in first few weeks to say £2.70. I will buy them but not as many as at first but will always hold until they return a profit.

[OnAFlyer]

Quick question, as we are buying these shares direct from RM will there be any commission to pay when we sell them?

[ratchet]

the shares that are given to moya and the little boys who she runs, will they be also not be able
to cash in until after 3 years or are they exempt.

Just one year for the Directors (presumably this is directors in the legal company sense rather than Royal Mail job titles like "director of paper clips") This could be possibly less than one year subject to unspecified "certain exceptions" or the "prior written consent of the Joint Global Coordinators"

From page 20 of the prospectus:

Pursuant to deeds of lockup, each of the Directors has agreed that, subject to certain exceptions, during the period of 365 days from the date of Admission, he or she will not, without the prior written consent of the Joint Global Coordinators, offer, sell or contract to sell, or otherwise dispose of any Ordinary Shares (or any interest therein in respect thereof) or enter into any transaction with the same economic effect as any of the foregoing, including in respect of any Ordinary Shares acquired by them pursuant to the Offer (including the Employee Priority Offer) and/or the Employee Free Shares Offer.

Some are more equal than others

[TrueBlueTerrier]

Quick question, as we are buying these shares direct from RM will there be any commission to pay when we sell them?

http://www.royalmailchat.co.uk/communit ... 33#p595533" onclick="window.open(this.href);return false;

[dt123]

Amazed, bewildered, cant believe what I'm reading. We have got RM employees discussing the best way to make a quick buck out of the erosion of their own terms and conditions. ' not sure how many I might buy now if there priced at the top of the scale'......'how long should i leave them before i cash in'....will i pay commission' . If there was ever a reason to vote yes then this must be it, employees putting their own personal greed before the security of the jobs and terms and conditions of their colleagues.

[Pete22]

Amazed, bewildered, cant believe what I'm reading. We have got RM employees discussing the best way to make a quick buck out of the erosion of their own terms and conditions. ' not sure how many I might buy now if there priced at the top of the scale'......'how long should i leave them before i cash in'....will i pay commission' . If there was ever a reason to vote yes then this must be it, employees putting their own personal greed before the security of the jobs and terms and conditions of their colleagues.

[OnAFlyer]

Amazed, bewildered, cant believe what I'm reading. We have got RM employees discussing the best way to make a quick buck out of the erosion of their own terms and conditions. ' not sure how many I might buy now if there priced at the top of the scale'......'how long should i leave them before i cash in'....will i pay commission' . If there was ever a reason to vote yes then this must be it, employees putting their own personal greed before the security of the jobs and terms and conditions of their colleagues.

Can you explain why an RM employee buying shares is more detrimental to you than a member of the public or investment firm buying them?

Or are you suggesting that if we don't buy any shares then somehow the float won't go ahead? It's happening like it or not, so you might as well try and make some money out of it.

It has absolutely nothing to do with how or what people vote in the ballot, RM will already be sold before the ballot even ends so it doesn't make a jot of difference to you if I buy some or not.

[Shambles]

I think it's called Principles?

I don't mean to be rude, but some of us have them, regardless!

I would personally feel like a hypocrite, but then, that's just me!

The Devil can't buy my soul, cos I flogged it already

[dt123]

Amazed, bewildered, cant believe what I'm reading. We have got RM employees discussing the best way to make a quick buck out of the erosion of their own terms and conditions. ' not sure how many I might buy now if there priced at the top of the scale'......'how long should i leave them before i cash in'....will i pay commission' . If there was ever a reason to vote yes then this must be it, employees putting their own personal greed before the security of the jobs and terms and conditions of their colleagues.

Can you explain why an RM employee buying shares is more detrimental to you than a member of the public or investment firm buying them?

Or are you suggesting that if we don't buy any shares then somehow the float won't go ahead? It's happening like it or not, so you might as well try and make some money out of it.

It has absolutely nothing to do with how or what people vote in the ballot, RM will already be sold before the ballot even ends so it doesn't make a jot of difference to you if I buy some or not.

No I wont explain cause if I need to explain then my cause to you is already lost. Just buy your shares.

[freelunch]

There are reports suggesting RM is under priced at the £2.60 - £3.30 Billion mark which suggests the price may well rise at first. But there's also the possibility of a strike which could lower it again. Personally I do think they will rise initially but not by much. So there won't be much money to be made in the first few weeks for the average small time investor due to dealing charges, etc. I think it's more of a medium term share.

Probable strike action by postal workers is priced in to pre-issue prices. Any industrial action is likely to have only minimal influence on RM earnings over the months ahead. With the under-performance of bonds this year, investors are very much looking forward to a new safe, higher yielding asset. I think this Royal Mail IPO will surpass nearly all the price expectations currently out there, i.e. £4.00+

[wacko74]

Can we try and keep the bitterness and resentment out of this and concentrate on the facts and Q & A's regarding the priority shares.

If you want to discuss the morals and principles of buying extra shares then start a new thread on it.

For the record I've applied to buy extra shares, I've also voted YES to strike action and will be walking out.

In answer to the earlier question Equiniti the RM nominee shareholder charge 1% when selling, which is quite steep compared to other options available, but I'm guessing buying through them is our only option if we want to get employee priority, so bit of a catch 22 situation.

Thanks to RobertT for the answers so far, seems to have bit more share knowledge than the average thick postie (me!)