AA and RAC could jump-start London markets with UK IPOs, reports say
Potential £5 billion valuations for the AA and RAC as London eyes revival amid a string of recent listings
Two of Britain's biggest roadside-assistance groups could help revive the stuttering London market next year with large initial public offerings, according to multiple reports.
The AA's owners have been sounding out potential buyers over a possible £5 billion sale or London listing, the Financial Times reported. The RAC is said to be targeting a similar valuation in a UK IPO, with a sale also possible. The firms declined to comment.
Recent market debuts from Princes Group, Beauty Tech and Shawbrook have offered a glimmer of hope that the London market is recovering. Reports suggest Norwegian software giant Visma could be heading for a bumper £18 billion float next year alongside the possible IPOs for the AA and the RAC.
The AA, formerly listed, had a rocky six-year spell on the stock market after being saddled with debt by previous owners. It was taken private in 2020 and is owned by a consortium including TowerBrook, Warburg Pincus and Stonepeak. The RAC is owned by private equity groups CVC, Silver Lake and Singapore’s GIC.
Industry watchers say a successful listing or sale of the AA and RAC could anchor a broader recovery in London’s mid-cap market, which has lagged larger listings in recent years. However, investors remain cautious amid volatile markets and a crowded IPO pipeline, where valuations and demand will be tested as funding conditions tighten.
A potential Visma float is not confirmed; sources say it could join the line of big IPOs next year, but timing and details are uncertain. If all materialize, London's IPO calendar could look significantly more active in 2026 than in 2025.
