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The British driving services group RAC is targeting an initial public offering towards the end of the year, prolonging London’s listing drought as volatile markets dash hopes for a wave of IPOs before the summer.
The RAC, which is backed by private equity groups and is targeting a roughly £5bn valuation, had been preparing for an IPO as soon as the first half of this year. However, the group is now working towards a post-summer timeline, with a flotation most likely in the final months of the year, according to people familiar with the matter.
A prolonged dearth of flotations in London has put a spotlight on the few companies gearing up for an IPO in the city this year, with the RAC among the touted prospects.
The FT previously reported that a sale was also possible for the RAC, even as a public listing remained more likely. One person close to the situation said the RAC was now solely focused on a listing.
Its closest driving group rival, the AA, is meanwhile gearing up for a possible £5bn sale of its own and has received some interest from other private equity groups.
A final decision on the timing of the RAC’s listing has still not been taken, although an army of nine banks has been appointed, alongside advisers Lazard, according to a person familiar with the process.
The RAC declined to comment. The company, which had more than 15.5mn members at the end of 2025, is owned by CVC Capital Partners, GIC, Singapore’s investment fund, and Silver Lake Partners.
The RAC’s public listing is the latest in a series of planned IPOs pushed back due to turbulent market conditions, as the US-Iran war and a sell-off in the software market disrupt deal timelines.
Software group Visma is to push back its €19bn float after a broad sell-off in the sector, the FT has previously reported. Loveholidays, the online travel agent tipped to be the London Stock Exchange’s first major listing of 2026, is also delaying its debut.
Companies that are still pushing ahead with their London listing plans include the bookseller Waterstones, which has tapped bankers to lead its offering in recent days, according to people familiar with the matter. Waterstones’ owner, Elliott Management, declined to comment.
Airtel Africa could also list its mobile money business in the British capital after the Iran war disrupted its original plan to float in the Middle East, according to people familiar with the matter, who added that no decisions on listing venue had yet been taken. Airtel declined to comment.
Other potential London IPOs this year include CK Hutchison’s AS Watson health and beauty business, which includes brands such as Superdrug. London would probably be a secondary venue alongside a primary Hong Kong listing.
The RAC, which offers roadside recovery and other services, posted revenues of £840mn last year, with adjusted earnings of £329mn — up 12 per cent on a year prior.
