The Frankfurt stock exchange is the scene of two flotations in the IT sector today, with veteran database and e-commerce software developer Software AG debuting on the Geregelter Markt while SAP integrator RealTech AG starts trading on the Neuer Markt.
Darmstadt-based Software AG will float 64% of its stock on the Geregelter Markt, which is for larger, more established companies than the small cap Neuer Markt, being only one step away from the main board.
The flotation was preceded by an initial public offering (IPO) of 16.7 million shares, the final price for which was due to be announced yesterday, after our deadline. Considering the price range for bookbuilding (30-37 euros, or $31.84-$39.27), the offering should bring anywhere from 501m to 618m euros ($531m-$655m) in proceeds.
Of the 16.7 million shares in the IPO, only three million were new, generating between 90m and 111m euros ($95.5m-$117.8m) for the company itself. The pension funds and foundations that hold the bulk of Software AG’s stock sold the rest.
On the Neuer Markt, Waldorf-based SAP consultancy and integrator RealTech AG will be coming to market after an IPO of a million shares, including a 100,000-share greenshoe option for over-allocation. The bookbuilding price, which ran from April 19-22 , was set at 49-54 euros ($52.50-$57.53). The operation should thus generation some 50m euros ($53.2m) or more for RealTech.
The company has a series of projects to be carried out with the funds from the IPO. It wants to open anywhere between 10 and 15 foreign subsidiaries, mapping SAP’s main international markets. In addition, it wants to invest in proprietary software development, and acquisitions are also not ruled out.
RealTech had a pre-tax profit up 89% at DM5.5m ($2.9m) on revenue up 97% at DM33.7m ($18.3m) last year. For 1999, the company expects to report a pre-tax profit of DM11.1m ($6m) on revenue of DM50m ($27.2m).
