The government sold off half its remaining stake in the Royal Mail this morning at 500p per share - half again as much as its original price when it listed in October 2013.
The offer netted the government £750m, leaving it with a 15 per cent stake in the business - although it sent shares down four per cent to 495.4p, below the offer price, in early trading.
Last night, the chancellor announced plans to begin the selloff of the remaining stake in the company. During an annual speech at Mansion House in the City, he added that one per cent of the shares on offer would go directly to employees of the service, who already own 10 per cent of shares.
Royal Mail's IPO in 2013 sparked an inquiry after critics suggested that with an offer price of 330p, then-business secretary Vince Cable had not achieved the best possible value for the taxpayer. However, business secretary Sajid Javid insisted this morning today's selloff had been a success.
11 June 2015 @ 1:45pmRoyal Mail (RMG)
"This sale... represents good value for taxpayers," he said.
"That money can be used to reduce public debt."