Royal Mail IPO: Small investors to be favoured over professional investors

Investors who’ve applied for the minimum entitlement of £750 of Royal Mail shares will receive 100% of their application, BBC business editor Robert Peston has claimed.

Peston has learnt from sources that small investors will be favoured over large investors, while anyone who has applied for more than £100,000 of shares will get none, he claimed.

Peston said: “A government source said to me that ministers wanted to reward the Mrs Migginses but not the big professional investors.”

He also said that individual investors could be allotted as much as 33% of the total shares on offer, up from the original amount of 30%. Professional investors, on the other hand, may see their shares reduced to 67%.

Business secretary Vince Cable announced yesterday that the IPO was seven times oversubscribed.