After much speculation, used-car marketplace Auto1 announced Wednesday that it will go public on the Frankfurt Stock Exchange in the first quarter of the year. The deal could value the Softbank-backed startup at more than €5 billion ($4.1 billion U.S.), according to insiders.

The company added that it plans to raise about €1 billion ($1.2 billion U.S.) from newly issued shares. The marketplace intends to invest around €750 million of the proceeds into its business as it aims to further develop its retail brand, Autohero.

Since its launch in 2012, Auto1 has grown into one of Europe’s largest platforms for both consumers and car dealers to buy and sell used cars online. The company grew rapidly and expanded its operations to more than 30 markets across Europe. In 2019, the company sold more than 615,000 cars.

“Today’s announcement opens the next chapter for Auto1 Group. The planned IPO is the next logical step to reinforce Auto1 Group as the go-to online destination for buying and selling used cars in Europe,” said Christian Bertermann, CEO and co-founder of Auto1.

BNP Paribas, Citigroup, Goldman Sachs, and Deutsche Bank are organizing the IPO as joint global coordinators. Barclays, HSBC, Numis Securities Limited, and RBC Capital Markets are supporting the deal as joint bookrunners while Crédit Agricole Corporate, Commerzbank, Mizuho Securities and Wells Fargo Securities are acting as co-lead managers.

The company said it wants to “revolutionize” the used car market.

“Auto1 Group plans to seize the vast market opportunity in the European used car market by driving the migration from offline to online. Auto1 Group plans to grow its Autohero retail offering across nine European markets to become the leading retailer for used cars in Europe,” the company said in a press statement.

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