London’s IPO Market has been spluttering and RAC could change that.
The London IPO market has had a rough ride. After a brief burst of activity at the end of 2025, war in the Middle East put listings on ice again. But now there’s a potential game-changer on the horizon: RAC, the West Midlands-based roadside assistance firm founded in 1897, is reportedly holding preliminary investor meetings ahead of a potential £5bn float on the London Stock Exchange. If it happens, it would be the biggest UK listing in years — and a serious signal that London is back in business.
What We Know About the RAC Float
RAC has held early meetings with prospective investors and fund managers — first reported by Bloomberg — the clearest indication yet that a public listing could materialise before the end of the year. Private equity backers CVC Capital Partners and Silver Lake are looking to offload their stakes, and a valuation of up to £5bn could see RAC qualify for the FTSE 100 — a significant milestone for both the company and the exchange.
The financials support the case. In 2025, RAC posted a 7% rise in sales to £840m, while core earnings climbed 12% to £329m. That’s a business generating real cash, not a speculative play.
This Isn’t RAC’s First Rodeo
RAC has had a colourful ownership history. Originally member-owned, it was acquired by insurance giant Aviva for £1.1bn in 2005, before Aviva later sold it to private equity firm Carlyle in 2011. Carlyle initially planned a stock market listing but reversed course in 2015, handing the business to its current PE backers instead.
So while the latest float talk has real momentum, it’s worth noting that RAC has been here before.
City Brokers Are Cautiously Optimistic
Market conditions remain tricky, but City broker Peel Hunt says the UK IPO pipeline is “the best we’ve seen in a number of years.” Brian Hanratty, head of equity capital markets at Peel Hunt, told City AM the market is “the most constructive we’ve been on the UK IPO market in some time” — with the caveat that companies eyeing Q2 listings are pausing given recent market volatility.
The working assumption is that the pipeline remains heavily H2-weighted for 2026, with a recovery in the back half of the year contingent on geopolitical tensions easing.
Key Takeaways
A £5bn RAC IPO would be a significant shot in the arm for London’s public markets — and a vote of confidence in the LSE at a time when it needs exactly that. The timing remains uncertain, and Middle East tensions are the key wildcard. But the investor meetings are a genuine signal, and the numbers back up the valuation.
FAQ
What is RAC’s potential IPO valuation?
RAC is reportedly targeting a valuation of up to £5bn on the London Stock Exchange. That would make it a candidate to join the FTSE 100.
Who owns RAC currently?
RAC is currently backed by private equity firms CVC Capital Partners and Silver Lake, who are looking to exit their stakes via the planned IPO.
What are RAC’s recent financial results?
In 2025, RAC reported a 7% rise in sales to £840m, with core earnings growing 12% to £329m — a solid base for a public listing.
Why has London’s IPO market been struggling?
The outbreak of the Middle East war in early 2026 dampened market confidence and put several planned listings on hold. The market did see a brief recovery in late 2025, with Shawbrook and Princes among the new entrants.
When could the RAC IPO happen?
No date has been confirmed. Peel Hunt expects the broader IPO pipeline to be heavily second-half weighted in 2026, depending on geopolitical stability.
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Effective Date: 15th July 2025
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