SHARES in Royal Mail yesterday slipped below below 400p for the first time since its IPO last October.
The shares bottomed out at 397.90p before closing on 400p, a fall of 3.47 per cent, after rival UK Mail issued a revenue warning because of a decline in parcel volumes.
That’s a year-low for the stock, which has attracted much controversy for its transition to a public company. About 60 per cent of the business was sold at 330p a share, raising £2bn for the Treasury.
But critics claimed it had been significantly undervalued when its share price soared 38 per cent on its first day of trading.
The IPO is now the subject of an investigation headed by former City minister Lord Myners, into whether taxpayers were ripped off as a result.
Meanwhile, Parliament’s business, innovation and skills select committee this week launched an inquiry into competition within the postal sector. It has called for evidence to be submitted by interested parties no later than 24 October.