Shares in AA Group fell after the UK motoring organisation joined the London stock market, just a month after its sister company Saga failed to impress investors in its own debut.
The AA, best known for its roadside recovery services, said it had priced its initial public offering (IPO) at 250p a share to raise gross proceeds of £1.4 billion (€1.75 billion). Most of the money will go to its private equity owners. Shares opened at 244p each and fell 2.6 per cent in conditional trading.
AA's share sale enabled its private equity owners Permira, Charterhouse and CVC to sell their entire shareholding. The private equity firms sold their stakes to a management buy-in team led by Bob Mackenzie, a former boss of car insurer Green Flag who is to become AA's executive chairman, backed by institutional investors. – (Reuters)