Royal mail is set to float on the stock market this autumn at a lower than expected price of £2.5bn, according to reports.
A report in The Sunday Times suggests the sell-off will see 130,000 Royal Mail workers receive around £2,000 in shares each on average as part of the IPO.
Previously it was thought the state-run postal network could be valued at as much as £4bn but the lower price would still see it sit just outside the FTSE 100.
The Sunday Times reports a formal intention to float could be filed with the stock exchange in September.
The report says no decision has been made as to whether the Government will retain a stake. If a flotation proves impossible, the Government may revert to a “plan B” and sell part of Royal Mail to a financial or trade buyer.
Earlier this month the minister for business and enterprise Michael Fallon said “2013-14 is the year” Royal Mail should be privatised in a blog on Tory news site Conservative Home.