RAC, the UK‑based breakdown cover and car insurance specialist, is in the final stages of appointing lead banks for a London IPO, sources say. The move follows months of preparation as the firm readies a public debut that could broaden its capital base and raise its profile among institutional investors.

RAC’s parent, a private‑equity consortium, has been steering the business toward a market listing to unlock value after years of steady revenue from roadside assistance contracts and motor insurance premiums. A public offering aligns with a broader wave of UK insurers seeking fresh equity as competition intensifies and regulatory capital requirements tighten.

Investors will watch which banks win the mandate, as their reputation can shape pricing and demand. Analysts expect the IPO to target a valuation that reflects RAC’s strong brand and recurring cash flow, though exact figures remain undisclosed. Completion could occur later this year, adding another automotive‑focused name to the FTSE 250.