British racing studio Codemasters is reportedly preparing to float on the London Stock Exchange.

As reported by Sky News, this move is coming from Codemasters Indian owners, Reliance Big Entertainment, with the firms approaching banks about an initial public offer.

Sky reports that Codemasters is loss-making, but one source claims that the valuation will likely be higher than £100m.

This isn't the first time that Codemasters has nearly headed towards flotation - back in 2007 the Darling brothers, who founded the studio, sold their stakes in the studio to Balderton Capital. This was reportedly the first step towards floating but financial institutions pulled out once they saw Codemasters debt-filled cap sheet.

Codemasters did not comment on Sky's story, which tells you everything you need to know really.

Codemasters isn't the only British development studio reportedly heading towards an IPO, with rumours of Sumo Digital going that way also. That firm is said to be targeting a £150m valuation.

The studio was founded in 1985 by Richard and David Darling and has focused on racing games for most of its life.  Reliance Big Media bought a 50 per cent stake in Codemasters back in 2010 before upping its interest to 60.41 per cent. 

In 2016, the studio also hired most of Evolution Studios following Sony's closure of that studio.