Mail Service Goes Public Tomorrow

Royalmail

Great Britain’s Royal Mail has been known for its quality service since 1516. Starting tomorrow, the company will also be known as a publicly traded company on the London Stock Exchange.

Beginning October 11, shares of Royal Mail stock will be sold to the public for the first time. Priced between $4.20 to $5.30 per share, the sale is expected to bring a substantial cash infusion to the British government.

More than 150,000 Royal Mail employees are expected to receive 10 percent of the shares in the public company while the British government will retain 37.8 to 49.9 percent. The estimated dividend yield on company stock is expected to return 6.1 to 7.7 percent.

The company has recently implemented efficiency reforms, reducing operational costs. That, combined with increasing revenues from package operations, has transformed the balanced sheets of the nearly 500 year-old company to a more favorable financial footing.

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3 Comments

  1. has transformed the balanced sheets of the 360 year-old company to a more favorable financial footing. . . . for now. Wait a year and see if the service doesn’t go right down the tubes.

  2. Grannybunny

     /  October 11, 2013

    What the story neglects to mention is that a massive government bail-out was necessary to position the Royal Post for privitization. Privitization of what should be government services is simply wrong, because of the costs of public services should never have to be increased to create a profit for the providers.

  3. Jonn

     /  October 11, 2013

    Privatization is definiely not a good thing for mail service. How long until rates vary based on locality? Uniform rates might be a condition of operation now, but that can change in the future with a publicly owned business. Rural people could end up paying a lot more than someone in the city for the same service. That’s not good. Sorry British people. I wish you could have USPS for your services. Rates in the US are half the cost of yours, even with the coming price increase, and there isn’t a chance of it going private in the foreseeable future.

    On another note, I’d really like to visit your country someday, so if you’re ever looking to fly an American over to share your culture with him or her, let me know. I’ll go! 🙂

  • Hello, I'm Benny the Blogger: I'm the world's most famous postal employee. My hobbies are snappy quotes, kite flying and publishing. I was born Jan. 17, 1706, but don't call me old.

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