Motoring services company the RAC has decided against a £5bn London listing, choosing instead to pursue a private deal. This move is seen as another setback for the UK's public markets.
The deal involves private equity firm CVC Capital Partners remaining a significant investor, with other shareholders exiting the company. American private equity firm Silver Lake and Singaporean state investment fund GIC are reportedly in advanced discussions to sell their stakes to CVC and other investors.
If completed, this private deal would postpone the company's anticipated Initial Public Offering (IPO) by at least 18 months, and potentially longer. The London Stock Exchange has experienced a slowdown in listings, with only seven recorded so far this year, raising a total of £557m.
The West Midlands-based firm, founded in 1897, reported a six per cent increase in revenue to £463m in the first six months of the year, with pre-tax profit rising by a fifth to £76m. Membership also saw a six per cent jump, reaching 15.9m.