‘Before Royal Mail stock began trading on the 11th of October 2013, the Labour party produced a report that claimed that by pricing the shares at 330p, the government were selling it off at significantly below the true market value.
The Labour analysis showed that the government had undervalued it by £1 billion (about 30%), whilst other city analysts have calculated that it had been undervalued by between £600 million and £2.7 billion (between 22% and 80%).
On the day of the stock market floatation, the share price immediately rose from 330p to 450p, before settling down at around 445p, indicating that the Labour party and the city analysts were right, the Royal Mail had just been sold off at massively below its market value.’
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