RAC may revive London’s IPO with £5bn float

London’s IPO market could soon see a resurgence, spearheaded by a significant £5bn float from RAC. The roadside assistance company is moving forward with its listing plans, defying market uncertainties. Founded in 1897 and based in the West Midlands, RAC has reportedly engaged in preliminary discussions with potential investors and fund managers. This development suggests that RAC may become a part of the London Stock Exchange before the year’s close.

The investor meetings, initially reported by Bloomberg, follow reports that RAC could attain a public market valuation of up to £5bn. This valuation would position it as a candidate for inclusion in London’s premier FTSE 100 index. The float, if realised, would be the largest to grace London markets in recent years, ending a prolonged period of inactivity exacerbated by market volatility following the outbreak of war in the Middle East.

Brokers still hold hope for a 2026 IPO recovery. According to City broker Peel Hunt, London’s IPO market could still experience a revival before the year’s end, as several blue-chip firms await a reduction in geopolitical tensions before proceeding with their floats. Brian Hanratty, head of equity capital markets at Peel Hunt, expressed optimism about the UK IPO market, noting a robust pipeline of companies ready to move forward once conditions stabilise.

London experienced a surge in IPOs at the end of 2025, concluding a two-year drought, with companies like British bank Shawbrook and tinned tuna giant Princes entering the public markets. However, the recovery stalled following the outbreak of war in Iran, as economic concerns put IPO plans on hold for many potential candidates.

This is not RAC’s first investor roadshow. Previously owned by its members, RAC was acquired by insurance giant Aviva for £1.1bn in 2005, only for Aviva to sell it to private equity firm Carlyle in 2011. Carlyle initially planned a stock market float for RAC but later transferred ownership to new private equity backers in 2015. In 2025, RAC reported a 7% increase in sales to £840m, with core earnings rising 12% to £329m.