RAC postpones £5bn London IPO in favor of private equity deal
The RAC has halted plans for a £5bn London flotation, opting instead for a private transaction that keeps CVC Capital Partners as a major shareholder.
Britain’s oldest breakdown recovery service, the RAC, has scrapped its planned £5bn initial public offering on the London Stock Exchange, choosing a private sale route. The company will retain CVC Capital Partners as a principal shareholder, and private equity firm Silver Lake along with Singapore’s GIC are in advanced discussions to dispose of their stakes to CVC and additional investors. This restructuring is likely to delay the flotation by a minimum of 18 months, further lengthening the lull in new listings that has affected the exchange this year.
The RAC, founded in 1897 and now a leading roadside assistance provider, recently reported a six-percent rise in revenue to £463m and a 20% increase in pre-tax profit to £76m, citing strong performance across its breakdown, insurance and maintenance divisions. The company highlighted growing membership, higher recurring revenue and improved margins as drivers of its outlook for the remainder of 2026.
Why it matters
The shift delays a major UK IPO, highlighting ongoing challenges for the London market and affecting investor sentiment.
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