SHARES in The AA, best known for its roadside recovery services, priced its initial public offering (IPO) at
Shares opened at
The private equity firms sold their stakes to a management buy- in team, led by
"We saw 10 cornerstone investors and then we felt we had enough to make a credible offer."
AA received commitments of more than pound(s)930 million from those investors, which include
They will take on AA's roughly pound(s)3bn of debt.
AA executive director
"The business is highly cash-generative and so will naturally de- lever over time."
The company will use pound(s)185m of the IPO proceeds, raised by the sale of new shares, to help pay down debt.
The AA is the
It also offers motor and home insurance and a driving school.
The firm had earnings before interest, tax, depreciation and amortisation (EBITDA) of pound(s)422.8m in the year to
Pretax profit was pound(s)214.6m, which was down from pound(s)312.7m a year earlier because of an increase in financing costs.
Saga shares are trading at 169.5p, below the 185p they were sold at in the IPO.
The AA, best known for its roadside recovery services, priced its initial public offering (IPO) at