The money was raised by selling a final 13% stake in the postal business, with the remaining 1% was passed on to Royal Mail employees. Royal Mail’s employees now own 12% of the company.
For the first time in 500 years, Royal Mail is entirely in private hands. The privatisation has brought in a total of £3.3bn for the government.
Chancellor George Osborne called today’s sale a “milestone moment” in the long history of Royal Mail.
“By fully leaving state ownership we have a win all round - for customers, the workforce and the taxpayer. And every penny will be used to pay down our national debt as we continue to bring our public finances under control,” he said.
“Once again, we are also going to recognise the hard work of the staff who have done a great job in turning the company around, and give them a 1% stake to share between them.”
The privatisation of Royal Mail started in 2013, and the first share issue was criticised after shares sold at 330p climbed above 500p the next month.
