AA Group raises 1.4 bln stg in stock market listing

Reuters - UK Focus

LONDON, June 23 (Reuters) - UK motoring firm AA Group said on Monday it had completed an initial public offering (IPO) to raise gross proceeds of 1.4 billion pounds ($2.4 billion).

The offering, priced at 250 pence per share, was oversubscribed and its owners, private equity firms Permira , Charterhouse and CVC (Taiwan OTC: 4744.TWO - news) , have agreed to sell their entire 100 percent stake in the company, AA said in a statement.

Best known for its roadside recovery services, AA received commitments of over 930 million pounds from institutional "cornerstone" investors including Aviva (Other OTC: AIVAF - news) , BlackRock Inc (NYSE: BLK - news) . and Legal & General (LSE: LGEN.L - news) , it said.

AA shares will start conditional trading on Monday.

($1 = 0.5876 British Pounds) (Reporting by Clare Hutchison; editing by Jason Neely)