Bank rejects fears over OSH flotation

The bank sponsoring the flotation of US accounting software house Open Systems Holdings (OSH) on the Alternative Investment Market has dismissed City unease over the company's finances.

OSH is the first US company to float on London's fledgling exchange. It intends to raise between #2m and #3m through a placing with institutional investors, leading to a market capitalisation of #10m. The flotation is sponsored by Butterfield Bank.

The Business & Accounting Software Developers Association has in the past expressed concern that OSH is only making its prospectus available to prospective institutional investors.

Butterfield Bank spokeswoman Catherine O'Connell said: 'At present, it's a marketing exercise while we contact institutions and private clients.

'We will finish the marketing this week or next ... and should be through with the whole process by the end of January, or beginning of February.'

OSH ownership changed frequently during the 1980s, including a period with Unisys from 1988 until 1991. Chief executive Michael Bertini acquired a stake in 1990, and assumed full control the following year.

Almost half the company's staff are engaged in research and development at its Minneapolis headquarters. OSH says it will open its UK-based international sales and marketing office as a UK holding company called Traverse Software.

O'Connell said: 'Institutions are sophisticated investors and most placings are to institutional shareholders. It's a normal situation. If individuals are interested in the placing, they contact us via a stockbroker.'