Dr Tony Marchington bought the Flying Scotsman for �1.5m in 1996

The company has already signed a five-year deal with the Venice Simplon-Orient Express to provide steam-hauled trips in the UK.

It also plans to create a Flying Scotsman Village in Edinburgh and develop a range of merchandise.

Chief executive Peter Butler said: "We are delighted that there has been so much interest in the company.

"Today marks the beginning of a new chapter for the company and enables us to capitalise on the huge potential of the Flying Scotsman brand - probably one of the best known unexploited brand names in the world."

Proceeds from the flotation will be used to fund the group's business plan - including an interactive tourist attraction in Edinburgh, a range of branded merchandise and an online Flying Scotsman.

Record-breaker

The Flying Scotsman was built in Doncaster in 1923 and went on to achieve fame by setting a number of records.

In 1928 it hauled the first non-stop train from London to Edinburgh, which at the time was the longest non-stop run in the world.

And in 1934 the locomotive was the first to achieve an authenticated speed of 100mph on a journey between Leeds and London.

After it was withdrawn from service by British Rail in 1963 it went on tours of the US and Australia.

Dr Tony Marchington bought the locomotive in 1996 for �1.5m, and Flying Scotsman Railways Ltd was formed to co-ordinate its restoration.