10th July 2014
Business secretary Vince Cable has ordered a review into Government IPOs following a barrage of criticism over the privatisation of Royal Mail.
The investigation, which will be led by Lord Myners, follows demands made by the National Audit Office which has accused the Government of badly mismanaging the now infamous IPO last October.
Shares in Royal Mail were sold off at 330p but rapidly rocketed in value, at one point hitting a high of 615p, meaning taxpayers missed out on a reported £750m of value.
The review will specifically look at recent UK private and public sector IPOs that have seen significant rises or falls in share trading prices following flotation. The panel will report back to Cable later this year.
Cable said: “I have asked Lord Myners to conduct this review, following the recommendations of the National Audit Office, to help me assess whether changes are needed to the current system government operates for the sale of its assets.”
The review will examine:
The launch of the review comes ahead of the Business Select Committee’s report on the Royal Mail privatisation, which is due to be published tomorrow, Friday 11 July. It is anticipated that the committee will call for a ban on City firms investing in IPOs, which they are already advising on.