First AA results set the scene for autumn listings

LEADING British car insurance and roadside recovery firm AA is set to release the first set of results this week since its float, as a range of other firms are believed to be gearing up for IPOs in the months ahead.

AA floated on 23 June at a value of £1.4bn and has since seen its shares rise by around 25 per cent.

AA is believed to be likely to deliver solid underlying numbers, though analysis by Cenkos has suggested the firm may be hit in the short term by one-off costs relating to the IPO. However, Cenkos thinks rising free cash flow from next year will help to pay down debt.

Management is believed to be keen to reduce significant debt at the 109-year-old firm, with AA being led by chief executive Bob Mackenzie since previous chief exec Chris Jansen left in August only a couple of months after the float.

While question marks over the outcome of the Scottish independence referendum had concerned markets and may have held back other IPO plans, the No vote last Thursday looks set to have eased doubts and put a range of firms on track to continue with plans to float soon.

AA’s major roadside recovery rival RAC is believed to be looking at a flotation soon, with senior management likely to receive hundreds of millions of pounds in a windfall if it pushes on with IPO plans which could value the business at up to £2bn.

According to reports, luxury shoe brand Jimmy Choo, which recently opened its expanded New Bond Street store, may also be close to a decision on its own plans for a possible IPO that could value it above £700m.

Meanwhile, Center Parcs owner Blackstone is also rumoured to be looking at an IPO for the holiday resort business.

Centre Parcs is also believed to be considering expanding into Ireland, having previously highlighted its potential as an attractive market and having had preliminary discussions with Irish tourism authorities.

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