IPO anniversary: Five reasons to hold onto your shares

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http://www.telegraph.co.uk/news/uknews/ ... hares.html" onclick="window.open(this.href);return false; Royal Mail IPO anniversary: Five reasons to hold onto your shares


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Large investors may have sold stakes but Questor Editor John Ficenec says the firm still has a profitable future

Half of the "priority investors" who received more than a fifth of the shares in Royal Mail's privatisation a year ago have entirely or almost entirely sold their stakes.

An analysis of the 16 investors' shareholdings compiled by the Telegraph using Bloomberg data shows that eight have reduced their stakes in Royal Mail by more than 90pc.

At the average share price over the last year of 522p, it would represent a profit of £169m between the eight companies, given that they bought in at 330p.
Royal Mail's shares rose from their 330p offer price to above 600p in the weeks following the IPO.

This year, MPs on the Business Select Committee said underpricing the sale had cost the taxpayer more than £1bn.

However Questor Editor John Ficenec still feels the shares represent good value and are worth holding for five reasons.
Francis Brooke of the top-performing Troy Trojan Income fund has also recently bought Royal Mail shares.