RAC IPO: Roadside Recovery Firm Set to Revive London’s IPO Market with £5bn Float
The RAC, a leading roadside assistance provider, is preparing for a potential £5 billion initial public offering (IPO) on the London Stock Exchange, potentially marking a significant boost for the UK’s IPO market, which has experienced a prolonged period of sluggish activity.
RAC’s Path to IPO
Founded in 1897, RAC has been exploring a return to the public markets, with preliminary meetings held with prospective investors and fund managers, according to reports from City A.M.. Current owners CVC Capital Partners and Silver Lake are looking to offload their stakes in the company.
A successful IPO would value RAC at approximately £5 billion, potentially qualifying it for inclusion in the FTSE 100 index. This move comes after a period of market turbulence, including disruptions caused by geopolitical events such as the war in the Middle East, which previously dampened IPO activity.
London IPO Market Recovery
The potential RAC IPO is seen as a positive sign for the London IPO market, which has been awaiting a significant deal to kickstart activity. Peel Hunt suggests the market is becoming more constructive, with a strong pipeline of potential IPOs weighted towards the second half of 2026.
Brian Hanratty, head of equity capital markets at Peel Hunt, noted that the pipeline is the best it has been in several years, although some companies initially considering a Q2 listing are now pausing due to recent market volatility.
The end of 2025 saw a resurgence in London IPOs, with companies like Shawbrook and Princes listing, but this momentum was interrupted by the outbreak of war in Iran.
RAC’s Ownership History
RAC’s journey to a potential IPO has been marked by several ownership changes. Originally owned by its members, the company was acquired by Aviva in 2005 for £1.1 billion. Aviva later sold RAC to Carlyle in 2011, who initially planned a float but later sold to the current owners in 2015. Sky News reports that RAC currently has around 14 million members.
AA Also Considering Options
RAC is not the only roadside assistance firm exploring strategic options. Its rival, the AA, is also considering a sale or flotation, with a potential valuation of around £5 billion. BMMagazine reports that the AA has appointed JP Morgan and Rothschild to review its strategic options.
Financial Performance
In 2025, RAC reported a 7% increase in sales to £840 million, with core earnings rising 12% to £329 million. Sky News indicates this positive financial performance strengthens the case for a successful IPO.