Around 40,000 investors who each applied for more than £10,000-worth of Royal Mail shares did not get any shares.
A total of 730,000 members of the public bid for more than £750-worth of shares in Royal Mail. Of these, 690,000 people were equally allocated £749.10-worth of shares, at a price of 330p per share, valuing Royal Mail at £3bn.
Business secretary Vince Cable said: “We have struck the right balance, increasing the proportion of shares going to small investors to ensure they get their fair share and ensuring the employees get a 10% stake in the business.”
The share price soared by 39% after Royal Mail debuted on the stock market today, leaping from 330p to 459p per share.