French banking group Societe Generale has announced the initial public offering (IPO) of ALD Automotive, its fleet leasing subsidiary, on the regulated market Euronext Paris.

Soc Gen initially announced the decision to list in the ‘middle of 2017’ in February, after unveiling ALD Automotive’s full year results for 2016.

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SocGen is expected to sell a 20% in ALD, amounting to 80.8m shares, with potential to list 23% of shares. The offering period for France will last from 5th June to the 14th, while the international offer will close on the 15th of this month.

Prices for both domestic and international offerings will range between €14.20 (£12.37) and €17.40 per share, with pricing of the global offering expected on 15 June.

Estimates say that the sale of a 20% stake could yield up to €1.4bn, though that number could reach €1.62bn if the option of overallotment is exercised, valuing the French fleet lessor at between €5.74bn and €7.04bn.

SocGen claims the IPO is “intended to enable the group to gain visibility and reputation in the mobility ecosystem”. The parent company said it expected ALD shares to start trading on Euronext Paris on 16 June, and the settlement and delivery of both the French and international offerings to be scheduled on 19 June.

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Frédéric Oudéa, chief executive officer of Societe Generale, said: “The IPO confirms the strategic nature of ALD within Societe Generale group. It will allow ALD to accelerate its development and become a leader in a rapidly changing mobility space.”