The Automobile Association is planning to launch a £4bn IPO this year as a source says that 10 institutional investors have been lined up to snap up large stakes in the group.

A source told IBTimes UK that AA's parent group Acromas Holdings will announce the flotation of one of Britain's largest car insurers imminently.

Aviva Investors, Blackrock, JPMorgan Asset Management and Legal & General Investment Management are just some of the major investors that are tipped to be involved in buying chunks of soon-to-be public group.

Also, Bob MacKenzie, the former boss at AA rival Green Flag , is tipped to be the AA's new chairman.

However, while the firm's equity is estimate to be around £1.3bn (€1.6bn, $2.2bn) on the IPO, the deal has not yet been finalised and it could still fall through, said the source.

The AA provides home insurance, travel insurance, and route planning, as well as, car insurance and breakdown assistance.

AA's parent company Acromas was founded in 2007 by private equity firms Charterhouse an Permira.

Acromas declined to comment.