RAC, the nearly 130-year-old provider of breakdown cover and car insurance, is reported to be close to naming the banks that would underwrite a possible initial public offering in London that could place the company's value at around a35 billion (about $6.9 billion).
People familiar with the matter who asked not to be identified said the company is expected to select Goldman Sachs Group Inc., Bank of America Corp. and Barclays Plc to help arrange the listing. Separately, Lazard Inc. is acting as a financial adviser on the transaction.
The business is currently owned by private equity investors Silver Lake, CVC Capital Partners Plc and Singapores GIC Pte. The sources noted that discussions remain ongoing and that the lineup and details could still change as plans continue to be refined.
The potential transaction would mark a sizeable listing on the London market, reflecting the company's long-established position in the UK market for motoring-related cover and insurance. Market participants and observers have indicated the move would be a notable event for both the insurance sector and the capital markets in London.
Key points of the emerging plan include:
- Selection of three lead banks to manage the offering - Goldman Sachs, Bank of America and Barclays are reported as front-runners.
- Lazard is serving as financial adviser on the deal.
- Ownership remains with private equity firms Silver Lake, CVC Capital Partners and GIC.
Those close to the situation emphasized that the process has not been finalized and that arrangements could be altered as the parties continue their deliberations. Beyond the choice of banks and adviser, further specifics about timing, pricing or the size of any share sale were not disclosed by the sources.
Because the report is based on unnamed sources, the matter remains subject to change and will depend on decisions by RAC and its owners. If it proceeds as described, the flotation would stand out as a significant offering on the London market and attract attention across the financial services and insurance sectors.
Summary
RAC is close to selecting lead banks for a potential London IPO that could value the company at around a35 billion. Goldman Sachs, Bank of America and Barclays are reported to be likely arrangers, with Lazard advising. The company is owned by Silver Lake, CVC and GIC, and discussions are ongoing with details still subject to change.