Quote:
Cable added on the BBC that the aim had been to secure committed shareholders. About 90 percent of the institutional allocation was placed with long-term investors such as pension funds and life insurance companies, with about 10 percent going to hedge funds, and the majority of institutional orders -- 500 out of about 800 -- received no shares at all.
Among successful subscribers were Threadneedle Investments UK, Fidelity, Blackrock Inc. and Standard Life Plc. (SL/)
The institutional allocation was cut to 67 percent from the planned 70 percent, the government said yesterday, with small investors getting 33 percent of the issue, up from 30 percent, after the stock assigned to them was seven times oversubscribed.
Royal Mail will pay investors a dividend of 133 million pounds in July, the government said, and a notional full-year dividend of 200 million pounds, which translates into a 6.1 percent dividend yield for 2014.
All individuals who applied for 10,000 pounds or less of shares -- more than 690,000 people -- received an allocation of 227 shares, equivalent to 749.10 pounds at the maximum offer price of 330 pence. Those who applied for more than 10,000 pounds got nothing.
How is that for scaling!!! no wonder it popped 38% on the first day!