May said the decision to enable members of the public to apply directly for shares is the right one, as a wide range of shareholders makes for "good business".
Government business secretary, Vince Cable, detailed the plans to float the company on the London Stock Exchange rather than a private buyer, explaining postal workers would receive 10% of the shares worth millions of pounds as part of the sale.
Cable has described it as the “biggest employee share scheme for nearly 30 years”, adding, “It is now time for employees to hold a stake in the company and share in its success”.
Stake in its future
May said individual investors tended to be longer-term shareholders and not speculators, while giving staff 10% of the share capital would give them a stake in the future profitability of the company and its govenance.
“Our initial view at APCIMS is that many aspects of the announcement appear to reflect what should become standard practice for future sales of government assets, particularly the significant offerings open to members of the public.”
Hargreaves Lansdown said the company could reach up to £3bn in the IPO, which is intended to take place later in the year.
“The success of the Direct Line Group and eSure share offers has reignited private investor interest in IPOs. The offer of shares to the public is reminiscent of the float of British Gas in the 1980’s accompanied by the ‘Tell Sid’ campaign.”
