Royal Mail will be valued at £3.3 billion when it makes its stock market debut and more than 690,000 private investors will receive shares.
The UK Government said all retail investors who had applied for between the £750 minimum and £10,000 worth of shares would receive 227 shares worth £749.10, meaning nearly 95% of all applicants will pick up stock in the privatisation.
Many hoping to secure a bigger slice of the company will be disappointed.
Retail investors who applied for more than £10,000 worth of shares will get none after the offer was seven times over-subscribed.
The Department for Business said one-third of the stake in Royal Mail, excluding the 10% of free shares being given to Royal Mail staff, had been allocated to retail investors, up from an initial plan to offer the public 30%. The remainder will be sold to the likes of pension, hedge funds and insurers.
On those receiving the shares, Business Secretary Vince Cable said: "We have struck the right balance."
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article