Applications for Royal Mail Shares have now closed with Vince Cable stating that they were oversubscribed 7 times. The price range that privatisation was based on, was between £2.60 and £3.30 and with that level of investor buying enthusiasm, they should go at the top end.

This could also net buyers a healthy profit if that same appetite for Royal Mail shares fueled a buying frenzy as they come onto the open market, when the Government will be critiscised for selling it too cheaply.

However the signs are that anyone that receives an allocation of shares, the minimum offered for purchase being £750, will make an early profit.

Royal Mail staff will be given free shares , equating to 10% of the company, worth approximately £2,100, depending on the opening price, which can only be sold tax free after a 5 year period.