Too many want in on Royal Mail IPO

Royal Mail Group Ltd.’s initial public offering is significantly oversubscribed and many institutional investors that applied to take part will get no allotment, sources say. Share orders priced below the maximum 330 pence risk missing out, say the sources, who asked not to be named. The stock, set to raise the equivalent of $2.8 billion for the government, may gain 20 per cent once trading starts, according to so-called grey market prices. Royal Mail’s privatization will be the biggest in the U.K. since British Rail was broken up in the 1990s. The IPO of the 360-yearold company opened Sept. 27 and was fully subscribed within hours.