Skip to main content

The privatisation of Royal Mail

The privatisation of Royal Mail has made headlines in recent days as the stock price rose to 479.50p on the first day of full trading on the stock exchange.

Questions accordingly have begun to be asked about whether the Government, who priced the shares at 330p, had undervalued the company.

The ICMA Centre’s lecturer in Finance, Dr Ogonna Nneji, was recently interviewed by David Prever, on BBC Radio Oxford and quizzed on his opinion about the valuation of the share price.

Dr Nneji said that based on previous initial public offering (IPO) of similar postal services organisations such as that of Singapore Post in 2003 and Belgian Post in June this year, which valued both of these businesses at around nine times their earnings before interest and tax (EBIT), Royal Mail shares may have been grossly undervalued at £3.3bn.

You can hear the full interview here at approximately 1 hour and 49 minutes into the programme.

Published 15 October 2013
Topics:
Business News

You might also like

Information on places available for 2013

15 August 2013
Call our Hotline team today on 0118 378 7878

The USS Valuation: Carry on with the Status Quo, or Remove Almost All Risk for the Employers and Make Pensions a Worse Deal for Members?

9 October 2017
In July 2017 the press was full of the news that in March 2017 the defined benefit section of USS (the retirement income builder) had a deficit of £17.5 billion. This number was computed according to the rules for company accounts, and is not used by either the regulators or USS.

ICMA Centre Students Celebrate Graduation Success!

2 July 2009
Champagne and Celebration was the order of the day, as the ICMA Centre celebrated the success of its students in style. Students graduated at the ceremony on 2 July in the Great Hall at the University's London Road Campus. Prior to the event, graduating students and their guests were invited to the ICMA Centre for a champagne reception.