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Software AG Systems launches IPO

Software AG Systems, the parent company of Software AG Americas, announced its initial public offering of 7.7 million shares at $10 per share.

    Software AG Systems, the parent company of Software AG Americas, today announced its initial public offering of 7.7 million shares at $10 per share.

    The common stock will be traded on the New York Stock Exchange under the symbol (AGS). The offering is underwritten by BancAmerica Robertson Stephens and Donaldson, Lufkin & Jenrette.

    Of the 7.7 million shares, 4.6 million are being offered by Software AG Systems, and 3.1 by selling shareholders. The company and selling shareholders also have granted the underwriters a 30-day option to purchase an additional 1,155,000 shares to cover overallotments.

    The company plans to use the proceeds of the IPO to repay debts, as well as for working capital and other corporate purposes.

    Software AG Systems provides enterprise software and professional services to large organizations. Software AG Americas, founded in 1972 as a distributor for Software AG products in North America, spun off as an independent company in April through an equity partnership with Thayer Capital Partners of Washington, DC.

    By early afternoon, Software AG Systems shares gained in light trading on the NYSE, up 1 to 11, but only after shares were sold at a sharp discount relative to initial analyst expectations of $12 to $14 per share.

    Reuters contributed to this report