Auto Trader could hit £2.5 billion valuation in looming float

Used-cars website Auto Trader is set to be valued at up to £2.5 billion when it joins the London Stock Exchange this month, it emerged today.

Advisers working on the City’s largest flotation of the year are believed to be planning to price the company’s shares between 200p-250p with private-equity giant Apax Partners set to offload a 35% -50% stake.

Auto Trader, which is led by chief executive Trevor Mather, began life nearly 40 years ago as a magazine, generating a fortune for its founder Sir John Madejski, who later bought Reading Football Club.

Apax first bought into the group in 2007, acquiring a 49.9% stake from Guardian Media Group, and it took full control of the business last year, buying the remainder of GMG’s stake.

Deutsche Bank and Bank of America Merrill Lynch are bringing the operation to market.

Auto Trader was unavailable for comment. The news was first reported by Bloomberg.