Royal Mail to undergo share flotation

Details of the share flotation of Royal Mail are to be revealed today (July 10th).

As part of the government's privatisation of the service, shares are expected to be released by the autumn, reports BBC News.

Speaking on BBC Radio 4's Today programme, business minister Michael Fallon stated that the extra capital will allow Royal Mail to grow. He explained the time is right to "free up" the body.

"It's been turned round in the last two or three years and it's ready now to be a successful commercial business," he said.

Royal Mail was able to more than double its profits last year after a few years of losses, with a boom in parcel delivery numbers explaining the improvement in its financial situation.

Last month, chancellor of the exchequer George Osborne stated that he is considering selling shares in Lloyds and the Royal Bank of Scotland (RBS) to raise funds.

RBS is currently 81 per cent owned by the taxpayer and the government has a 39 per cent stake in Lloyds.

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