Auto Trader motors after pricing IPO at 235p per share

Auto Trader Group, the UK car classified company on Thursday priced 590m shares at 235p/share in its initial public offering in the London market.

The stock jumped as high as 10% to trade at 268p, topping its IPO price.

The company is raising £437m of net proceeds in the offer with its private equity owner, Apax expected to raise around £926.2m out of the flotation.

Shares offered by Auto Trader represent 59% of the company's issued share capital on admission. Based on the offer price, the total market capitalisation of the company will be £2.35bn at the commencement of conditional dealings on early Thursday.

Auto Trader appointed Bank of America Merrill Lynch and Deutsche Bank to carry out the IPO.

Apax had been considering a sale of Auto Trader to US buyout group Hellman & Friedman for about £2bn but instead chose to go down the IPO route. Apax acquired full control of the business from Guardian Media Group in February 2014, in a deal that valued the company at the time at £1.75bn.