Large investors who had their bids to buy a large stake (more than £10K) in Royal Mail rejected by the government have been left confused and disappointed, according to sales trader from IG.
Will Hedden said the government's strategy could prove risky should they need these same investors to buy large stakes in RBS and Lloyds.
There is a lot of bad feeling at the £10K applicants who got nothing, and with RBS and Lloyds offerings on the horizon at some point, the government has set a precedent here, that whilst they have attracted in small retail investors to the market, they have confused and angered some of the larger ones who they might need further down the line.
Shares in Royal Mail soared again this morning as trading started making them almost 50% more valuable than the government's price tag.
Within five minutes of Royal Mail being officially listed on the London Stock Exchange over a million shares had been traded.