Royal Mail share prices were set by some people who know a thing or two about the money markets. The shares were set at £3.30.
Fuelled by the greed of a public that is almost totally illiterate about corporate valuations (and remembers the last public sector float), the shares reached £5.03 on Friday. This is despite the fact Royal Mail staff seem to have been programmed to self destruct by their antediluvian union bosses - a warning, if ever I saw one.
Pundits are claiming the shares were under-valued, citing the massive rise in prices. However, that depends on what you're trying to achieve; a realistic valuation, or a South Sea Bubble, which I fear is where this float is headed.
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