Post Office sell-off underpriced?

If you managed to acquire Post Office shares at 330p per share you will have been presently surprised by the opening price on the London Stock Exchange. At 8am on the first day of trading the shares stood at 430p rising to 450p in the first few minutes. At the end of the first days’ trade the price stood at 455p. A rise of nearly 38%.

And the price continued to increase giving rise to press speculation that the floatation was “under-sold”. No doubt the professional advisors will have to face a few difficult questions in the coming weeks?

In the meantime there continues to be strong demand for the shares in the face of confirmed industrial action. CWU General Secretary, David Ward said, before the ballot result was known, that:

"We will not accept people maximising individual profit on the back of minimising the value, terms and conditions of postal workers. We're determined this privatisation will not lead to the kind of job losses and downward pressure on pay and conditions we've seen in other industries and we're seeking a legally-binding agreement to protect jobs."

Be interesting to see how the intended interruption in services affects the share price?

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