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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Heidi who wrote (1517)	7/19/1998 8:38:00 PM
From: Patriarch	Read Replies (1) \| Respond to of 3424

You're probably right on the SAP take-off after August 3. I think once it gets on the Big Board, Mutual Fund managers who can't buy on the pink sheets will dive in. Not to mention exposure to other investors. I'm new to the thread and I'm happy I found it. Got into SAP a few weeks ago. Now a long term hold. Regards, Pat

To: Heidi who wrote (1517)	7/20/1998 10:59:00 AM
From: Heidi	Read Replies (1) \| Respond to of 3424

FYI (from SAP site) SAP AG will list its shares on the New York Stock Exchange on August 3, 1998. What does it mean that SAP is listing on the New York Stock Exchange (NYSE)? One of the reasons SAP is listing on the Big Board is to make its shares more accessible to US investors. The SAP shares that currently trade in the United States in the form of ADRs (American Depositary Receipts) are traded over the counter in the 'pink sheets'. These ADRs are dollar-denominated shares backed by the SAP preference shares trading in Germany. The listing involves moving trading of these ADRs from the pink sheets to the New York Stock Exchange. No new shares will be offered and this is not an IPO - the current ADRs will simply be listed and traded on the NYSE. If I currently own SAP ADRs, or purchase shares prior to the listing, what will happen to these shares on Aug. 3? Any ADRs owned prior to August 3 will be automatically adjusted to the NYSE-traded ADRs. Shareholders will not be required to do anything. When the shares move to NYSE trading, the ratio of ADRs to the underlying German preference shares will change as follows: Currently: 3 ADRs = 1 German preference share From listing day: 12 ADRs = 1 German preference share While there will be no change to the preference shares trading in Germany, the ratio change for the ADRs will act like a 4:1 ADR split. This means that if you currently own 30 ADRs, after the listing you will have 120 ADRs - but you will still hold the same 10 underlying preference shares. At what price will the ADRs be listed? Since the listing is not an IPO or a new offering of shares, the stock will open at the price determined by the market. Taking into consideration the effect of the ratio change, the listing price on August 3 should be one-fourth of the July 31 closing price. (For example, if the SAP ADR closes at $200 on Friday, July 31, the NYSE ADR will begin trading at $50 on Monday, August 3.) What is the current ticker symbol for SAP ADRs? What will the ticker be after the listing? SAP's ADRs are currently traded over-the-counter in the pink sheets under the ticker 'SAPHY'. Following the August 3 listing, SAP's ADRs will be traded on the NYSE under the ticker 'SAP'. Is the stock currently quoted? The SAP ADR is quoted, however it can be difficult to obtain up-to-the-minute trading information on 'pink sheet' securities. Services such as Bloomberg and websites like stockmaster.com post the ADR's previous day's closing price. When the ADRs list on the NYSE, intra-day price quotes will be readily available, and financial tables of major national daily newspapers should carry information on SAP. How do I buy SAP shares in the US? A simple method of purchasing SAP shares in the US is through ADRs. You may currently purchase SAP ADRs through a broker just as you would any other security. (Be sure to remind him/her that the shares are trading in the 'pink sheets' until the listing) A direct investment program will be established after the August 3 listing, through which you will be able to purchase shares directly from the depositary bank without going to a broker. Look for details after the listing. Does SAP report its financial information in US GAAP? Not yet. SAP presently reports its figures under the rules of German accounting, but is in the process of converting to US GAAP. SAP plans to announce financial information in US GAAP for the 1999 fiscal year. The standard reporting currency for the company in 1999 will be the euro. For the 1998 fiscal year, the company's consolidated figures will be reconciled to US GAAP. Reminder . On August 3, 1998, the SAP ADRs currently trading over-the-counter will be listed on the NYSE. The existing ADRs are simply moving from the 'pink sheets' to the Big Board - it is not an IPO or a share offering. ÿ