The supervisory board of Volkswagen AG said it has decided to pursue an IPO of up to 25% of non-voting preferred shares of Porsche AG, its luxury automotive manufacturer.

Investors expect a valuation between €60 billion and €85 billion.

“The preferred shares are planned to be listed on the regulated market of the Frankfurt Stock Exchange,” said Porsche.

“The planned IPO is targeted for the end of September or beginning of October and is expected to be completed by year end, subject to capital market conditions.”

Oliver Blume, chairman of the executive board of Porsche AG, said: “We very much welcome the decision of the Volkswagen Supervisory Board in favor of an IPO of Porsche AG.

“This is a historic moment for Porsche. We believe an IPO would open up a new chapter for us with increased independence as one of the world’s most successful sports car manufacturers. It would strengthen our ability to further execute our strategy.”

In preparation for the IPO, the share capital of Porsche AG was divided into 50% preferred shares and 50% ordinary shares.

Porsche said that in the IPO itself, up to 25% of the preferred shares in Porsche AG would be listed “to support a meaningful free float and help create a liquid aftermarket for the Porsche AG shares.”

Preferred shares would be offered to retail investors via a public offering in Germany and several other European countries.

The IPO would involve public offerings in Germany, Austria, France, Italy, Spain and Switzerland as well as private placements to institutional investors.