Roadside rescue company the AA said on Friday that it would issue £210 million of new shares in an accelerated initial public offering, valuing the company at about £1.39 billion.

AA said it would offer up to 554 million new and existing shares at 250 pence per share.

The company primarily provides roadside assistance for vehicles that break down.

The company and Acromas Bid Co Limited, which currently owns 100 per cent of AA, said they had already received binding commitments of more than £930 million from cornerstone investors.

AA's flotation comes just weeks after its sister company, Saga, owned by private equity firms Permira, Charterhouse and CVC, listed on the London Stock Exchange.

Reuters