Floatation info

[RobertT]

For anybody who is interested, some more in depth info about the allocation of shares, etc can be found here:

http://www.hl.co.uk/royal-mail/ipo-updates/thank-you" onclick="window.open(this.href);return false;


Or if you want to purchase more shares, here:

http://www.myroyalmail.com/employee-share-offers" onclick="window.open(this.href);return false;

[cloherty1976]

RobertT will you be buying extra shares as I value your opinion as you talk a lot about pensions and other investments on here?

[RobertT]

RobertT will you be buying extra shares as I value your opinion as you talk a lot about pensions and other investments on here?

I'm not particularly in favour of privatisation but to be honest I can't see it being scrapped now. I haven't decided 100% whether I'll buy more or not, but I might buy a few extra as a bit of a punt, and see where they take me. Although I don't think I'll buy more than the £500 minimum.

[cloherty1976]

Will be buying myself but not just for a short term will hold some for at least a year,but will not sell if less than I bought them for if they do go down in value. Remember they say dividends will be good so I suppose will take some dividends and see how they go.

[RobertT]

Taken from 'intention to float' pdf from the Hargreaves Lansdown link (above):

Royal Mail will adopt a dividend policy that supports its aim of generating value for shareholders while ensuring that it retains sufficient capital to invest in growing its business.
In respect of FYE 2014, in the absence of unforeseen circumstances, Royal Mail intends to propose a final dividend only, to be paid in July 2014, of £133 million. This amount is approximately two-thirds of the full-year dividend of £200 million that would have been proposed if Royal Mail had been listed throughout FYE 2014.
10 per cent. of the £133 million dividend will be paid to eligible Royal Mail employees who are allocated Shares under the Employee Free Shares Offer.
In subsequent financial years, Royal Mail intends to pursue a progressive dividend policy having regard to normalised earnings progression of the Group.

I make that a dividend of £88 per RM employee to be paid in July 2014, based on 150,000 employees having shares.

[mandelsons_toenail]

So

If you had £500 of additional shares

What would the dividend be?

[kjm]

How the F*****g hell can they give a dividend figure when they don't even know the value of the company/shares????? am i missing something?

[mandelsons_toenail]

[Lincox]

Looks like it is based on 50% of the £400million profit they say they have made for last business accounting year.

[barrowc]

The first rule of investing is diversification - i.e. don't have all your eggs in one basket. If your job and your pension are dependent on Royal Mail then paying a significant sum to purchase shares in Royal Mail leaves you dangerously exposed to the fortunes of one company.

The only good reason for any of us to buy more shares would be if we could use them to influence the direction the company takes. The CWU need to look closely at the rules around annual general meetings and encourage all of their members to appoint the CWU as their proxy at the AGM (unless the member intends to attend the AGM themselves, of course - good luck getting a day's annual leave for that)

[RobertT]

So If you had £500 of additional shares, what would the dividend be?

Probably about £22.

How the F*****g hell can they give a dividend figure when they don't even know the value of the company/shares????? am i missing something?

The dividend is based on a percentage of the profits rather than the value of the shares.

[RobertT]

The first rule of investing is diversification - i.e. don't have all your eggs in one basket. If your job and your pension are dependent on Royal Mail then paying a significant sum to purchase shares in Royal Mail leaves you dangerously exposed to the fortunes of one company.

Totally agree and is very good advice!

The only good reason for any of us to buy more shares would be if we could use them to influence the direction the company takes.

And to hopefully make a bit of money.

The CWU need to look closely at the rules around annual general meetings and encourage all of their members to appoint the CWU as their proxy at the AGM (unless the member intends to attend the AGM themselves, of course - good luck getting a day's annual leave for that)

Most if not all companies give shareholders postal votes for AGM's and as I'm an adult and capable of making my own decisions, the CWU won't be voting on by behalf.