German etail giant Zalando plans to float on the Frankfurt stock exchange this year, following months of speculation.

Zalando, which is currently owned by Kinnevik, anticipates to list a stake of 10% to 11% on the stock exchange.

It is aiming to raise more than €500m to fund business growth, according to Reuters.

The offering could value the retailer at between €4bn and €6bn. The share price is expected to be set on September 29.

The offer is expected to consist solely of new shares from a capital increase of Zalando. Kinnevik currently owns 36% of Zalando.

Kinnevik chief executive Lorenzo Grabau said: “Kinnevik is delighted about Zalando’s plans to list on the Frankfurt stock exchange. We first invested in Zalando in 2010 and since then have invested cash of SEK 5.5 billion to become the company’s largest shareholder.

“We look forward to continuing to work with Zalando’s founders and management team, and to support their future growth ambitions after the listing.”

The intention to float comes after Zalando revealed last week that its half year sales surged 29.5% to €1.047bn and it made its first-ever operating profit, €12m up from an operating loss of €72m a year ago.

Morgan Stanley, Goldman Sachs and Credit Suisse are coordinating the IPO, while Deutsche Bank and JP Morgan are joint bookrunners. Jefferies and Stifel Nicolaus Europe are Co-Lead Managers.